LIBRARY 

THE  UNIVERSITY 
OF  CALIFORNIA 

SANTA  BARBARA 

PRESENTED  BY 
Glen  G.   Mosher 


'  r^v^r    'ftsfaL 


PACKARD'S 


NEW    MANUAL 


OF 


BOOK-KEEl    NG 


AND 


CORRESPONDENCE. 


BY 

S.  S.  PACKARD, 

^President  of  @?a,eJcard's  (Business   Gollege, 

Author  of  the  "  BRYANT  &  STRATTON  BOOK-KEEPING  SERIES,"  the  "  PACKARD  COMMERCIAL 
ARITHMETICS,"  and  "  PACKARD'S  COMPLETE  COURSE  OF  BUSINESS  TRAINING." 


NINTH     EDITION. 


NEW    YORK: 
S.    S.    PACKARD,   805    BROADWAY. 

1888. 


COPYRIGHT.    1884,   BY  S.  S.  PACKARD. 


>.    ••   ;•  •    .u.. 
k*»  •».,  V.  T. 


H   •  :.;.     !•.!;.. Tilt  !:-. 
IT  KOM  8t,  N.  T. 


LIBHAKY 

UNIVERSITY  OF  CALIFORNIA 
SANTA  BARBAKA 


P  B  E  F  A  C  E. 


-809- 


THIS  little  book  is  aimed  at  a  real  want  felt  in  most  commercial  schools 
and  commercial  departments  of  high  schools.  It  does  not  presume  to  supply 
all  the  material  requisite  for  a  complete  training  in  Book-keeping  and  Cor- 
respondence, and  yet  it  aims  at  giving  the  best  form  of  instruction  in  each,  as 
far  as  it  goes.  And  in  this  matter  it  is  not,  in  any  sense,  an  experiment,  but 
the  result  of  years  of  experiment  and  faithful  labor.  The  first  part  of  the 
book — that  which  relates  to  the  subject  of  accounts — has  been  substantially  in 
use  in  the  commercial  schools  for  the  past  twelve  years,  and  has  received  the 
best  form  of  endorsement  from  eminent  teachers — that  of  constant  use  in 
their  classes.  The  original  book,  of  which  this  is  a  revision  and  enlarge- 
ment, has  served  as  a  book  of  initiatory  instruction  in  accounts  in  a  large 
share  of  the  business  colleges  of  the  country,  while  it  has  been  used,  as  a 
complete  text-book,  in  many  of  the  commercial  departments  of  high  schools 
and  academies  in  the  United  States  and  Canada. 

While  the  sets  in  the  "  Business  Series "  were  and  are  well  adapted  to 
develop  the  subject  of  Book-keeping,  it  has  been  long  felt  by  the  more  exact- 
ing teachers  that  the  preliminary  instruction  was  too  brief  and  too  restricted 
in  its  application  ;  for  while  the  plan  of  teaching  the  science  by  first  intro- 
ducing separate  accounts  (original  with  this  treatise)  was  felt  to  be  the  only 
true  and  logical  plan,  it  was  found  that  these  exercises  were  not  rendered 
sufficiently  simple,  and  that  there  was  a  lack  of  sufficient  material  to  enforce 
the  lessons  upon  minds  not  able  to  grasp  an  idea  or  a  principle  upon  its 
presentation  ;  and  so  teachers  have  been  forced  to  supplement  the  work  of  the 
book  with  material  of  their  own.  The  revision  has  fully  remedied  this  fault, 
and  has,  besides,  develop'ed  the  subject  in  a  more  gradual  and  better  classified 
method.  There  has  been  no  chance  work  here.  Every  step  has  been  taken 
cautiously  and  with  a  view  to  final  results,  and  nothing  has  been  omitted 
which  was  deemed  essential  to  a  complete  logical  enforcement  of  the  subject. 
The  first  part  of  the  book,  in  the  form  of  "  Advance  Sheets,"  was  sent  out 
nearly  a  year  ago,  and  has  been  faithfully  tried  in  a  large  number  of  business 


ii  PBffACX. 

UlllsfSS,  wherr  It  in  Mill  in  us* ;  and  the  positive  opinion  of  those  who  have 
Uiu»  tartrd  it  leaves  no  doubt  in  the  author's  mind  that  he  has,  at  last,  com- 

•    ,   •       •    ,•  '  - 

The  addition  of  a  chapter  on  BuaineM  Correspondence  is  deemed  of  the 
first  importance;    for,  although  there  aiv  |>l<-nty  of  text-bonks  on  I..-H.T- 
•  ng  and  EngUah  Grammar,  then*  ure  very  few,  no  far  an  tin-  author  is 
aware,  that  can  be  used  economically  or  effectively  in  this  connection.     '!!..• 
tame  general  Mem  which  has  prevailed  in  preparing  tho  matter 
keeping  to  carried  out  iu  this  part,  via,:  to  give  but  little  preliminary  lust  na- 
tion, and  that  the  most  important  and  most  readily  applied,  and  t»  ]la<>    in 
the  student's  hands  plenty  of  material  whereby  ho  may  work  out  tho  practical 
results,  cither  by  him*  If  or  under  tho  guidance  of  his  tcncltrr.     Then- 
thought  to  do  away  with  tin-  study  «>f  Kn^lish  (Jrammaror  Kn^lish  Composition, 
as  such,  but  rather  to  show  the  importance  of  such  study,  and  to  make  some 
progress  in  it  necessary.     There  is  no  book,  so  far  as  tho  author  knows,  that 
comprises  so  much  material  for  work  in  Correspondence  as  is  embrace*  1  in 
these  thirty  pages;  and  it  is  believed  that  if  this  material  is  properly  used,  it 
will  be  sufficient  in  most  cases  to  correct  prevailing  errors  in  Letter  Writing. 

The  Appendix  is  an  important  pan  of  the  book,  not  merely  for  its  forms, 
bat  more  for  the  additional  matter  for  practice  which  it  contains.  Th<>se  who 
hare  felt  the  need,  in  the  old  book,  of  forms  for  principal  books  and  methods' 
of  using  them  will  find  this  omission  happily  supplied  in  the  Appendix,  while 
the  extra  material  for  test-work,  and  especially  for  the  adjustment  of  partners' 
Interacts  under  various  conditions,  will  find  favor  in  tho  eyes  of  thorough 
teachers  and  earnest  pupils. 

In  short,  the  NBW  MAJOJAL  is  offered  to  teachers  as  covering  an  important 
part  of  business  training,  and  while  it  does  not  seek  to  displace  other  books 
on  the  same  subject*,  it  is  confidently  !n-]i,-ved  to  contain  matter  which  will 
aptly  supplement  any  such  book  now  in  use. 

And  with  this  estimate  of  its  place  among  commercial  text  books,  the 
author  respectfully  submits  it 

Jtew  YOB 


CONTENTS. 

CHAPTER    I.  PAGE 

ACCOUNTS        ...' 5 

Cash  account 5 

Personal  accounts                              - '? 

Bills  Receivable  account 

Bills  Payable  account 

Merchandise  account 

Real  Estate  account        -  15 

Shipment  or  Adventure  account         -         -        -        -        -        -  17 

Commission  and  Service  account 18 

Interest  account 

Securities  account 

Incidental  accounts    -        -        -        -  24 

Proprietary  accounts       -        - 26 

STATEMENT  OF  PRINCIPLES       - 

NOTES  AND  ACCEPTANCES       -                30 

QUESTIONS 

CHAPTER    II. 

TRANSACTIONS  AND  THEIR  RECORD  - 

EXERCISES  IN  JOURNALIZING 34 

A  MODEL  SET  OF  BOOKS        -                        38 

Memorandum  of  Transactions 

Day- Book  (Separate)       -  39 

Journal  (Separate)  40 

Day-Book  and  Journal  Combined 42 

Ledger  (Current  Condition)  44 

Trial  Balance  46 

Analytic  Statement 47 

Showing  Full  Results  in  the  Ledger 48 

Ledger  (Closed)  49 

Closing  the  Ledger          ..        -        ...        -        -        -  -52 

Balance  Sheet     •  54 

Vouchers  accompanying  Model  Set 57 

MATERIAL  FOR  CONTINUATION  OF  MODEL  SET  GO 

QUESTIONS       ...  62 

CHAPTER    III. 

BUSINESS  SERIES  63 

Set  I.— Produce  Business  (Single  Proprietor)         ...  -      64 

Set  II. — Grocery  Business  (Single  Proprietor)  -  66 

Set  III. — Dry  Goods  Business  (Single  Proprietor)  67 

Set  IV. — Furniture  Business  (Single  Proprietor)       ...  69 

Set  V. — Furniture  Business  Continued  (Partnership)     -        -  70 

Set  VI. — Grocery  Business— Shipments  (Partnership)       -  71 

Set  VII. — Commission  Business  (Single  Proprietor)  73 

Set,  VIII. — Commission  Continued  (Partnership;       ...  75 


IT  COJfTMNTS. 

CHAPTER    IV. 

Tor  BuBsoiMsi  AHD  FORM*.  »-A«« 

Synth.-MB 

Anmlviu.                                       78 

Vouchers  (to  accompany  sets)    •  81 

ril.M'TKU    V. 

;'.;-:-,            •                  l  • ,  •  s  ;  •  l  \  i  !  -  '• ' 

Straetaro  of  a  Letter  s '•' 

Expression 92 

i'     :,      ],••   ->  97 

MATERIAL  FOR  PRACTICE. 

Arrangement (-|s 

Spelling 98 

The  Choice  of  Words         -  100 

Grammatical  Construction 104 

Punctuation  and  the  Use  of  Capitals  . '  »> 

Style                       106 

Briefing 108 

Quran,  LKTTKRS. 

Letters  of  Introduction 110 

Oni.                «!s 11-J 

Adrising  of  Shipment* 113 

Miscellaneous 118 

Circulars,  Advertisements,  and  Telegrams         ....  116 

APPENDIX. 

Sir  IX.— Cumnxo  AND  GEVTLKMES'S  PCUSISHINO  (Partnership)  119 

FORMS  or  BOOKS 

Journal 

Safes-Book  ivM 

Cash  Book 

Ledger 128 

Btatnnent 181 

Kill  Book  •  ... 

imnar  Journal 

Rrr  X.— <*OSTISCATIOX  or  SET  IX  (Partnerahip)    - 

SET  XI.— PUBLISHING  BCSIKEM  (Partnership) 

SET  XII.— BRUKER'M  BCSIXESS  (Partnership) 143 

MOM  or  A  rx  i  LI  ART  BOOBS 

Cash  Book  (Two  forms) 146 

Sales-Bonk  1 17 

Commisrioa  Sales  Book                  148 

Check  Book  and  Auxiliaries 148 

PARTXERSUIF  SETTLEKEXTS                        i.vi 

MlSCELLAXEOCS  EXAMPLES           -  IM 

or  EHBORS  ix  TRIAL  BALAXCES 158 


BOOK-KEEPING. 


CHAPTER     I. 

ACCOUNTS. 

§1.  —  BOOK-KEEPING  is  the  recording  of  the  dealings  of  a 
business. 

§  2.  —  This  is  best  done  through  the  form  of  Accounts. 

§  3.  —  AN  ACCOUNT  is  a  collection  of  items  so  arranged  under 
a  proper  head,  as  to  show  a  definite  result. 

§4. — Among  the  results  shown  by  accounts  are:  1.  The 
amount  of  money  on  hand ;  2.  What  is  owed  to  the  business, 
and  what  the  business  owes ;  3.  What  has  been  gained  or  lost. 

§  5.  —  The  amount  of  cash  on  hand  is  shown  by  the  Cash 
account.  What  is  owed  to  the  business,  and  what  the  busi- 
ness owes  is  shown  in  accounts  with  persons  and  in  accounts  with 
notes  and  acceptances.  [The  notes  and  acceptances  in  our  favor 
are  called  Bills  Receivable,  and  the  notes  and  acceptances  against 
us  are  called  Bills  Payable.]  What  has  been  gained  or  lost  is 
shown  in  accounts  recording  the  activities  or  the  operations  of  the 
business. 

§  6.  —  The  statements  and  examples  which  follow  are  intended 
to  cover  the  objects  and  methods  of  these  different  classes  of 
accounts. 

I.    CASH    ACCOUNT. 

§7.  —  1.  The  Object.  To  show  the  dealings  in  cash,  and 
the  amount  of  cash  on  hand. 

§8.  —  2.  The  Method.  When  cash  is  received,  the 
amount  is  placed  on  the  left  or  debit  side ;  and  when  paid, 
the  amount  is  placed  on  the  right  or  credit  side.  The  excess 
of  the  debit  over  the  credit  will  be  the  amount  on  hand. 


§0.  —  EXAMPLE  OF  CASH  ACCOUNT. 


It.  in-.. 


/. 
*. 
3. 
4. 
A. 
0. 

8. 
9. 

10. 
//. 


Received 
Paid  cash,  $5. 
Received  $50. 
Paid  *t.  ?5. 
Paid  **.&>. 
Paid  //f. 
Received  $15. 
Received  ff.50. 
Paid  $14.30. 
Paid#>. 
Paid  $1S.1S. 


Oub  r«c«lv*d. 

Oath  paid 

/ 

16 

75 

t 

6 

I 

:,.. 

4 

8 

75 

7 

15 

6 

4 

50 

• 

9 

50 

6 

U 

•  • 

•  i 

• 

14 

80 

10 

9 

11 

12 

15 

•  0 

TO 

Received  -    -    $83.99 
Ptld     •    •    -     80.70 

On  hand  •    - 

*  Ml 

MATERIAL  FOR  PRACTICE. 

§1O.  (FIRST  SERIES.)  Items.—  /.  Received  cash,  $125. 

2.  Paid  cub.  $S5.13. 3.  Paid  $12.35.  -•  t.  Paid  $19.75. 

6.  Received  $119. «.  Received  $,  ;.  Paid  $S7. 

8.  Paid  $11.83. 0.  Paid  $12. 17.-  1O.  Received  $13.50. 

1 1.  Paid  $14.75.  -  /  .'.  Paid  $93.76. 

Required,  bain  nee  of  auk  on  fiand. 


§11.     (SECOXD  SERIES.)     Items.  —  /.  Received  cash  from  the  pro. 
prietor.  $17.',.  .....  V.  Received  caah  oft  account  <>f  Jouea  &  Co.,  ^ 

:t.  Paid  caah  for  goods.  $t9.lS.  •  •  I.  I;.  •  •  :  v,-,l  cash  for  goods,  $182.35. 

ft.  Paid  office  boy.  $7.  .....  ff.  Paid  for  Htationi-ry,  $25.  - 

7.  Received  on  J.  Triplet's  note.  £750.  -  V    H.-.-.-iv.-.!  t<  r  i  .....  d- 

'/.  Paid  salaries,  .<  IO.  Paid  to  proprii- 

/  /.  Received  on  Abram  Stuart's  account,  $37.50.  .....  IX.   Paid  store 

rat.  $150. 

balanet  of  auh  on  hand. 


§12.    (THIRD  SERIES.)     1  1.  •  n  i  >.—  /.  Cash  invested  by  H.  B.  Bryant 
(partner).  $IOUO.  -  .'        .*\\  invested  by  C.  R  Carrol  (partn. 

:t.  i'aid  cash  for  merchandise,  $450.  -  -  -     -4.   Received  cash  for 

merchandise.  $S9.H.  .....  ft.  Received  cash  for  merchandise,  $73.85.  -  - 

d  cash  for  oar  note.  $300.  .....  7.  Paid  cash  for  interest  due  on 


PERSONAL     ACCOUNTS.  7 

mortgage,  $112.50.  -  -  -  -  8.  Paid  cash  for  store  rent,  $150.  -  -  -  -  9.  Received 

cash  on  Jones's  account,  $102. 1O.  Paid  cash  to  H.  B.  Bryant  (partner), 

$75. 11.  Borrowed  cash  on  our  note,  $490.  --•     -  12.  C.  E.  Carrol 

(partner)  drew  cash  on  private  account,  $50. 13.  Paid  cash  for  insur- 
ance on  goods,  $125. 14.  Received  cash  from  H.  B.  Bryant,  $200. 

15.  Paid  cash  to  book-keeper,  $100. 

Required,  the  balance  of  cash  on  hand. 


§  13.  —  Debts  owed  to  the  business,  and  debts  owed  ~by  the 
business  are  shown  in  accounts  with  persons  under  their  proper 
names,  and  in  accounts  with  notes  and  acceptances  under  the 
titles,  Bills  Receivable  and  Bills  Payable. 

II.    PERSONAL    ACCOUNTS. 

§  14.  —  1.  The  Object.  To  show  our  dealings  with  persons, 
and  what  they  owe  us  or  we  owe  them. 

§15. —  2.  The  Method.  All  items  in  our  favor  are 
placed  on  the  debit  side  of  the  account  of  the  person  who  thus 
owes  us,  and  all  items  against  us  are  placed  on  the  credit 
side  of  the  account  of  the  person  whom  we  thus  owe.  The  dif- 
ference will  be  the  fact  of  debt  for  or  against  us.  If  the  debit 
side  is  the  larger,  the  person  owes  us  the  difference ;  and  if  the 
credit  side  is  the  larger  we  owe  the  person  the  difference.  If 
the  sides  are  equal,  the  indebtedness  is,  of  course,  canceled. 


5.  Received  his  note  for  $30. 


§16.  —  EXAMPLES  OF  PERSONAL  ACCOUNTS. 

Dr.       H.  E.  Hibbard.       Or. 
Items. 

1.  DEALINGS  WITH  H.  E.  HIBBARD. 

1.  Sold  him  goods  for  $15.75. 

2.  Received  from  him,  cash,  $10. 

3.  Sold  him  goods  for  $25. 

4.  Sold  him  goods  for  $18. 75. 


Against  him. 

In  his  favor. 

1 

15 

75 

2 

10 

3 

25 

5 

80 

4 

18 

75 

40 

59 

so 

Total  debits  -  $59.50 
Total  credits  -    40 


He  owes  us     -  $19.50 


Dr.         \\.  A.   Millrr.        Or. 


Items. 

8.  DEAUBO*  WITH  \v.  A.  MILLKR. 
/ .  Nought  goods  of  him,  at  $75. 
2.  Bought  good*  of  him,  at  $50. 

I 'aid  him  cash,  $*5. 
4.  Gare  him  our  note  for  $60. 


Iti-ms. 

S.  DBAUXOS  WITH  E.  R  FKLTON. 
/.He  owns  as  $1OO. 
9.  He  bays  goods  of  as,  at  $62.50. 
.7.  He  pays  as  cash,  $50. 

4.  He  bays  goods  of  as,  at  $37.50. 

5.  He  gives  as  bis  note  for  $150. 


Afiinct  him. 

In  hi.  faror. 

S 

25 

1 

4 

60 

. 

50 

•  • 

in 

Dr. 


Tottl  credits  -  $135 
Toul  deblu  -  86 
Weoictfiim  •  $40 

E.  R.  Folton.        Or. 


Ac&lnsl  him. 

In  hi«  bror. 

i 

100 

S 

H 

a 

• 

50 

150 

4 

:;: 

50 

•  00 

too 

Toul  debits,  |900.       Total  credit*,  $900. 
Canctbd. 


MATERIAL  FOR  PRACTICE. 

§17*     (FIRST  SERIES)     It«-m«.  —  1.  Thomas  Hunter  owes  as  a 

of  $100. 2.  He  bays  of  us  on  credit,  goods  amounting  to 

/     .  '  .  .7.  He  pays  as  cash,  $S5.  •  •     •  •  4.  He  borrows  of  as  cash, 

$50. S.  He  gives  as  his  note  to  apply  on  account,  for  tv 

0.  He  pays  a  debt  for  as  of  $75.  •  •  ! .  He  works  for  us  four  days  for 

which  we  credit  him  $8.  -  8.  He  loans  as  cash,  $75.  -  it.  We  sell 

him  goods  amounting  to  $!5. 

Required,  tke  balance  of  inddtedncu  for  or  againtt  him. 

§18.     (SECOKD  SKBIM.)     Items.—  1.  We  deposit  in  State  Bank. 
$375.  •  ;.  We  pay  a  bill   by  check  on  the  Bank,  $S5.  •  •  •'{.  Tl.. 

Bank  collect*  a  note  for  UK.  and  credit*  us  with  tin-  amount  as  a  deposit,  $150. 

•  4.  Paid  for  goods  by  check,  *  -  S.  Deposit.  <!. 

6.  Paid  for  note  by  check,  $15O.  •  •       -7.  Bank  pays  for  our  note  1< 
collection  and  charge*  amount  to  as,  $110. 

Required,  the  balance  in  Bant. 

§10.     (Tnntp  Bmn    Four  Separate  Aeeonntt.)    Items.  — /.  Sold 
Robert  Hall  on  credit.  8  brla.  Floor,  at  $10  per  brl.,  f  •        :'.  Bou^lit 

oo  credit  of  A.  Stuart,  dry  good*  for  $127.50.  -  •  -  !  Peter  Cooper 


BILLS    RECEIVABLE    ACCOUNT.  9 

on  credit,  merchandise  for  $1/25. 4.  Received  cash  from  Peter  Cooper, 

$150. 5.  Sold  goods  on  Thomas  Jones's  order,  for  $25. 6.  Bor- 
rowed cash  of  Thomas  Jones,  $125. 7.  Paid  cash  on  A.  Stuart's  order, 

$127.50. 8.  Sold  Robert  Hall  20  bush.  Wheat,  at  $1.25  per  bush., 

$ 0.  Sold  Peter  Cooper  20  brls.  Flour,  at  $9.25,  $ 

1O.  Bought  of  A.  Stuart,  dry  goods  for  $350. 11.  Sold  merchandise 

on  A.  Stuart's  order  for  $200.  -  •      •  -  12.  Paid  A.  Stuart  cash,  $150.  -  - 

13.  Received  cash  from  Peter  Cooper,  $200. 14.  Gave  Thomas  Jones 

our  order  on  Peter  Cooper  for  the  balance  of  his  (Jones's)  account,  f  * 

15.  Lent  Robert  Hall,  $75. 16.  Bought  of  Peter  Cooper  a  set 

of  double  harness  for  $250. 17.  Received  Rob't  Hall's  note  for  $50. 

Required,  Hie  standing  of  the  several  accounts. 


§  2O.  —  Notes  and  acceptances  are  written  evidences  of  debt. 
A  NOTE  is  a  direct  promise  to  pay  a  certain  sum  of  money  at  a 
certain  time ;  and  an  ACCEPTANCE  is  a  similar  promise  in  a  dif- 
ferent form.  [Full  descriptions  of  these  documents  are  given  in 
§83,  page  30.] 

§  21. —  Other  people's  notes  and  acceptances  which  come  into 
our  hands  are  called  Bills  Receivable  because  we  are  to  receive 
the  amount  stipulated  therein;  and  our  notes  and  acceptances 
which  pass  into  other  people's  hands  are  called  Bills  Payable, 
because  we  are  to  pay  the  amount  stipulated.  Thus,  Bills 
Receivable  account  will  show  what  others  owe  us  on  written 
promises,  and  Bills  Payable  account  will  show  what  we  owe  others 
on  written  promises. 

III.     BILLS    RECEIVABLE    ACCOUNT. 

§22. —  1.  The  Object.  To  show  our  dealings  in  other 
people's  notes  and  acceptances,  and  the  amount  of  such  notes 
and  acceptances  on  hand. 

§  23.  —  2.  The  Method.  When  other  people's  notes  or 
acceptances  are  received  the  amount  written  upon  the  face  is 
entered  on  the  debit  side  of  the  account,  and  when  such  paper  is 
paid,  or  in  any  way  disposed  of,  the  amount  of  the  face  is 
entered  on  the  credit  side  of  the  account.  The  difference,  if 
any,  will  be  the  amount  of  other  people's  paper  on  hand. 

*  In  this  case  the  person  who  owes  us  pays  the  person  wbnn?  ma  ""'*  Tbp  fornw 
should  be  credited,  and  the  latter,  debited. 


10 


§24.— EXAMPLE  OF  BILLS  RECEIVABLE  ACCOUNT. 

Dr.      ItilK    KV.Ti\:iMr.      t'r. 


/.  Received  J   Phillip'ti  note,  in  pay- 
iarn«  »f  mvount.  for  $375. 
.-.M-d  *  harles  Jones's  note  for 
$150. 

3.  Disputed  of  Phillip's  not.-.  X 

4.  Received  Samuel   FeltonV  H<-.-,-[,I 

ance  in  payment  for  good.- 

5.  Cbas.  Jones  pays  his  note,  £— — . 


Nottw  and  Accept- 
ance* received. 

Notes  and  Ac 

in,  ,  s  ,  '  s  •  .,  ,  s. 

oept- 

dot 

J 

875 

.7 

875 

g 

150 

6 

150 

4 

215 

»t» 

T48 

Ikcoived  -  -  |740 
DUpoMd  Of-  MS 
On  hand  -  •  t*lS 


MATERIAL  FOR  PRACTICE. 

§  25.  (FIRST  SERIES.)  Items.  —  /.  We  have  on  hand  F.  Luick's 
note  of  $250.  •  •  -2.  Received  Smith  &  Co.'s  acceptance  in  payment  for 
Roods,  $149.50.  •  •  •'•'.  !{••<-.  iv-  .1  II.  S«'vin.)ur's  note  to  ai)i)lyon  liis  nrcouiit, 
$78.  -  •  I.  !'.  Luick  p»y»  his  note,  $  -  -  S.  Sol.l  II.  S.  ytnour's 

*  -  •          <»'.   Received  H.  Potter's  note  in  settlement  <>t  n«-i  (Hint, 

$137.4O.  •  •  ;  .    Exchanged  H.  Potter's  note  for  goods,  £  __ 

s.   Received  of  J.  C'uyler,  in  wttli-mrnt  of  account,  P.  Cooper's  acceptance 
for  $i5O.  •  •          it.  Smith  &  Co.  have  paid  on  their  ar<vpt:n    • 
1O.  Sold  merchandise  to  J.  Sizer,  receiving  his  note  therefor,  for  $110. 

Required,  the  amount  of  bunnem  paper  on  hand. 


(SECOND  SERIES.)     Itonis.  —  /.   Have  on  hand  the  following 
paper  :  H.  Cornell's  note  of  $500  ;  P.  Dickson's  acceptance  of  $7;~  ;  H.  I  iorton'H 
•ccppUnce  of  $IS5  (enter  separately).  -  -  -  -  2.  Sold  ('.  Randall  merchandise, 

and  received  his  note  for  $117.50.  .....  3.  Gave  P.  Dickson's  acccptam  •••  in 

part  payment  for  g^^*-.  f  .....  4.  Received  of  H.  Wise,  to  npply 

on  his  account,  his  note  for  $175.  .....  f».  Sold  B.  Horton's  ac---  i  tunce, 

f  -  <»'.  Kxchanged  notes  with  F.  C.  Woodbury  for  our  mutual 

accommodation,  £?D0.  -  •         7.   Received   Robert  Anderson's  n»t<-  in  ]myinent 
for  goods,  $75.  .....  S.  Sold  A.  J.  Rider  merchandise,  and  r«  <••  i\  •  I  hi- 

for  $100  in  part  payment.  .....  .'/.  Received  cash  for  F.  (     Woodlmry's 

:     •       •  - 

Required,  the  note*  and  acceptance*  on  hand. 

§27.     '  TII  i  itn  SERIES.*      It.-ins.—  /,  Sold  merchan  Nuke- 

man  for  $fOO.  receiving  bis  note  at  80  do.  in  payment.  -  -          9.  fl 
James  Parton.  bis  note  at  10  ds.  in  full  of  hia  account,  $!::•.  .....  .'i.  Sold 


i  to  be  entered  In  BtUe  Rocclrmblc  account  appear  in  italic*. 


SILLS    PAYABLE    ACCOUNT. 


11 


Wakeman's  note  of  $200  at  a  discount ;  receiving  cash,  $199.33  ;  discount  off, 

$0.67. 4.  Bought  H.  B.  Bryant's  note  of  $400,  due  in  '3  months,  at  a 

discount  of  $6.     Paid  net  cash,  $394. 5.  Paid  cash,  less  discount,  for 

the  following  notes  :  J.  Smith's,  having  20  ds.  to  run,  $300 — discount  off,  $1  ; 
C.  E.  Stuart's,  15  ds.  to  run,  $275 — discount  off  69f  ;   J.  H.  Pollock's,  17  ds.  to 

run,  $350 — discount  off,  $1.05. f>.  Received  cash  for  J.  Smith's  note, 

now  due,  '?  7.  Paid  out  C.  E.  Stuart's  note,  to  apply  at  face 

value  on  J.  Rantoul's  account,  f S.  Received  E.  G.  Folsom's 

note,  at  30  ds.,  in  full  of  account,  $210. 9.  Paid  cash  for  F.  Goodman's 

acceptance  of  $400,  favor  of  G.  A.  Gaskell,  at  30  ds.— discount  allowed,  $2. 

J.O.  J.  Parton  pays  his  note  of  $129  in  cash,  with  the  accumulated 

interest  thereon  of  $3.50. 

Required,  the  notes  and  acceptances  on  hand. 


IV.     BILLS    PAYABLE    ACCOUNT. 

§28. —  1.  The  Object.  To  record  our  issues  of  notes  and 
our  acceptances  of  drafts — and  to  show,  at  any  time,  our  out- 
standing paper. 

§  29.  —  2.  The  Method.  When  we  issue  a  note,  or 
accept  a  draft,  the  face  or  amount  of  such  paper  is  entered 
on  the  credit  side  of  the  account,  and  when  we  redeem,  such 
paper  its  face  or  amount  is  entered  on  the  debit  side  of  the 
account.  The  difference,  if  any,  will  express  the  amount  of 
paper  we  have  outstanding. 

3O.— EXAMPLE  OF  BILLS  PAYABLE  ACCOUNT. 

Dr.        Bills  Payable,        Cr. 
Items. 

1.  Issued  our  note  to  Peter  Cooper 

for  $300. 

2.  Gave  our  note  in  payment   for 

goods,  $175. 

3.  Accepted  Jones's  draft  for  $150. 

4.  Paid  our  note,  $175. 

5.  Issued  note  to  G.  West  for  $250. 
(i.  Issued   note  to    P.    Roberts    for 

$100. 
7.  Paid  our  acceptance,  $150. 

4 

650 


Our  promises  red'd. 

Our  promises  issued. 

1 

*300 

4 

175 

2 

175 

7 

150 

3 

150 

385 

5 

*250 

G 

*100 

»7B 

*  300                            Issued  -   -   - 
*  250                             Redeemed     - 
*  100                            Outstanding  - 

$975 
825 

$650 

11 


MATERIAL  FOR  PRACTICE. 

'.'•1.    (FinsT  SKIIII  -      Itrnis.— /.  \\V  him- tin- following  outstand. 
Ing  obligations :    Note  in  favor  of  John  Jones  for  $300  ;  note  in  favor  •>( 

S.  \N  Intiii-y  for  $15O';  acceptance,  favor  of  Tlioe.  Stevens,  for  $45<>. 

9.  Bought  merchandise  of  11.  Chirk, and  gave  uur  n"!<>  l«>r»x'y •"•>•-  -  -  -  •"*•  Rec'd 
of  John  Brown,  in  part  payment  for  goods,  our  note,  favor  of  John  Jones, 

$90O. 4.  Paid  cash  for  our  note,  tuvor  of  S.  \\  hitm-y,  »'  -  • 

.1.  linvo  our  note  to  1'   Morton,  in  settlement  of  account,  $175. 1i.  Ac- 

,,  ;.-..•  I'. •:.  r  Qooptrt  draft   f..r  $K  .  •  ;.   Bought  goods  of  P.  Shaft, 

giving  In  part  payment  our  note  for  $375. 

Required,  the  amount  of  our  outstanding  paper. 

§32.  (SECOND  SERIES.)  Items.— /.  Bought  goods  of  C.  C.  Bowen, 

giving  oar  note  for  same,  $J75. 2.  Accepted  J.  Smith's  draft  to  apply 

on  our  account,  $1S5. 3.  Exchanged  note*  with  \V.  A.  .Miller,  for 

our  mutual  accommodation,  $1000. •/.  Sold  merchandise  to  A.  Bro\vii, 

receiviug  therefor  our  note,  favor  of  C.  C.  Bowen,  £  ----.>.  Accepted 

Q.  A  Oaakell's  draft,  at  10  ds.,  to  apply  on  our  account.  £.  '•".  -  -  -  -  <;.  s.ld 
goods  to  A.  J.  Rider  for  $1500,  receiving  in  part  payment  therefor,  our  note, 

favor  of  W.  A.  Miller,  f  ;  cusli  for  balance. 7.  Bought  of 

Stewart  &  Co.,  on  our  note  at  80  da.,  goods  for  $350. S.  Paid  our 

acceptance,  favor  of  O.  A.  Gaskell,  in  cash,  f  -  -  -  -  it.  Bought  goods 

of  Peakc.  Opdyke  &  Co.,  amounting  to  $075.  Paid  cosh,  $425 ;  our  note  ut 
80  da.  for  balance,  $ 

Required,  our  outstanding  paper. 

§33.    (THIRD  SEBIBB.)    In-m-*.— /.  Have  the  following  outstanding 
notes:   one  in  favor  of  Smith  &  Bailey,  due  in  one  month,  for  $035 ;  one, 

favor  of  Thomas  Acton,  due  in  17  days,  for  $5(>0. 2.  Bought  goods  of 

White  &  Taylor  for  $1500 ;  paid  cash,  $375 ;  our  note  at  3  months  for  balance, 

$  ,'{.  Sold  goods  to  Jones  &  Smith  for  $720  ;    received  in  part 

payment,  our  note,  favor  of  Smith  &  Bailey,  for  f  ;  cash  for  balance. 
4.  Exchanged  notes  with  Thomas  llorton.ior  our  mutual  accommoda- 
tion, each  at  80  ds.,  for  $150. fi.  Redeemed  our  note,  favor  of  White 

ft  Taylor,  now  due,  in  cash,  f  -  -  -       ft.  S.|<l  goods  to  J.  VVoolsou, 

receiving  in  full  payment  our  note,  favor  of  Thomas  Acton,  £  - 

7*  Bought  goods  of  Jaffray  &  Co.  for  $.")?")  ;  paid  cash,  $175;  our  note  at 
80  da.  for  balance.  |  -  -  •  V  (cpted  Benj.  Wise's  draft  at  30  ds ., 

to  apply  on  account.  $W>.  -  -  '.».  I'.ud  rash  for  our  acrommod.it ion  note, 
favor  of  Thomas  Morton,  f  ;  leas  discount  for  15  ds..  >0 

/  ".  Redeemed  our  note,  favor  of  Jaffray  &  Co.,  before  due,  f  paying 

cash  for  same,  lew  discount  for  20  da.,  $3.33. 


MERCHANDISE    ACCOUNT.  13 

§34.  —  The  purpose  of  business  is  to  acquire  wealth,  and 
business  enterprises  are  undertaken  and  pursued  to  this  end.  All 
such  enterprises,  however,  are  attended  with  more  or  less  risk, 
and  oftentimes  the  effort  put  forth  to  gain  results  in  loss. 

§  35.  —  Hence,  accounts  which  exhibit  the  progress  of  the 
business  must  be  susceptible  of  showing  either  a  gain  or  a  loss. 
As  in  Cash  account,  receipts  and  payments  are  placed  against 
and  cancel  each  other,  the  difference  being  the  cash  on  hand,  so 
in  these  accounts  of  the  business,  cost  and  returns  oppose  each 
other,  the  difference  being  the  gain  or  loss. 

§  36.  —  The  accounts  used  to  mark  these  enterprises  are  vari- 
ous, as  the  enterprises  themselves  are  various,  and  the  names  of 
the  accounts  are  generally  significant  of  the  operations  grouped 
under  them.  In  a  business  of  buying  and  selling  goods,  Mer- 
chandise account  is  commonly  used  ;  in  a  manufacturing 
business,  Manufacturing  or  Manufactures  account ; 
in  a  professional  business,  Service  or  Labor  ;  in  a  commission 
or  agency  business,  Commission,  etc.,  etc. 

§  37.  —  The  accounts  which  follow  are  all  of  this  class ;  and 
while  they,  by  no  means,  embrace  the  entire  list,  they  are  intended 
to  be  fairly  representative  of  the  class. 


V.     MERCHANDISE    ACCOUNT. 

§  38.  —  1.  The  Object.  To  show  our  dealings  in  merchan- 
dise, and  the  result  of  such  dealings  as  to  gain  or  loss. 

§39.  —  2.  The  Method.  When  goods  are  purchased,  or 
any  cost  is  incurred  for  which  merchandise  is  responsible,  the 
account  should  be  debited  with  the  cost;  and  when  goods 
are  sold,  or  when  they  produce  value  in  any  way,  the  account 
should  be  credited  with  the  returns.  When  the  goods  are 
all  disposed  of,  the  difference  between  the  two  sides  of  the 
account,  as  it  stands,  will  be  the  gain  or  loss.  If  it  is 
desired  to  show,  in  the  account  itself,  the  gain  or  loss  before 
the  goods  are  all  disposed  of,  it  will  be  necessary  to  add  to 
the  credit  side  of  the  account,  the  present  market  value  of  the 
unsold  goods,  or  what  it  would  cost  to  replace  them. 


14 


ACCOl'.\TS. 


;  io.— EXAMPLE  OF  MERCHANDISE  ACCOUNT. 

Dr.        Men  hamlise.       Or. 
It.  NI>. 


OMf. 

Return*. 

I 

000 

5 

50 

| 

in 

4 

75 

1410 

.• 

;;; 

50 

'- 

129 

50 

7 

nr.'.t 

50 

H4» 

00 

Return*  •    -  $1540 
'    '     148° 


J.  Bought  gooda  of  Simpson  ft  Co. 

:       • 
V.  Bought  gooda  of  J.  McCreerv  t'.-r 

» 
3.  Sold  gooda  to    Isaac  Moore  for 

$137.60. 

I .  >.  .M  goods  for  cash,  f  75. 
«?.  Sold  goods  for  cash,  $37.60. 

6.  Sold  goods  to  A.  S.  Hewitt  for 

*/-' 

7.  Vulur  of  unsold  goods,  $1160.50. 


MATERIAL  FOR  PRACTICE. 

8  41.     (FraBT  SERIKS).     Items.—  /.  Bought  goods,  on  %,  of  J.  M. 

Stuart,  £750. 2.  Paid  cash  for  freight  and  cartage  on  above  goods,  $75. 

Sold  gooda  to  J.  Jones  for  cash,  $125.  •       -  -  4.  Sold  goods  to 

E.  R  FeJton.  on  %,  $47.60. S.  Sold  goods  to  W.  H.  Sadler,  receiving  his 

note  therefor,  $15u. 6.  Bought  goods  of  J.  McCreery,  giving  our  note 

for  same,  $1259.75.  -  -  -  -  7.  Paid  cash  for  insurance  on  goods,  $1  . 

8.  Sold  goods  for  cash,  as  per  petty  cash-book,  $35.10.  •  •          '.t.  Value  of 

goods  unsold.  $1789.66. 

Required,  tke  gain  or  lost. 

§  42.  (SBCOKD  SERUM.)  Items.  —  1.  Bought  for  cash,  200  brls. 

r,  at  $10  per  brl  ,  $  2.  Bought  on  our  note  at  ;iO  ds.,  500 

bush.  Wheat,  at  $1.50,  $ .7.  S..M  for  cash,  50  l.rU  Flour,  at 

$11.   *  •  -/.  Paid  cash  for  ri  •'•*  -  •>•   I'"i«l  cash 

-rk  hire.  $S5.  •  i;.  <  ,1,1   f,,r  rush.  1<H>  bu-.h.   \\ 'li.-at,  at  $1.75, 

f  -          -  7.  Sold  B.  Hill  on  hin  note  at  10  ds..  l-'iil  l.u>l,.  \Vh,-nt,  at 

$1.73,  $ v.  Our  goods  unsold  consist  «.f  l.M)  lirls.  Flour,  worth 

$11  per  brl.,  $1650;  250  bush.  Wheat,  worth  $1.75  per  bush.,  $437.50  = 
$tO87.6Q. 

Required,  the  gain,  or  Ion. 


•  Item*  of  trp*aaa,  like  thl*  and  In  tb«  succeeding  record,  are  sometime*  charged  to  a 
•eparato  account,  bat  they  are  a  part  of  the  general  cott  of  merchandise,  and  are  *o  con- 


REAL    ESTATE    ACCOUNT. 


15 


§  43.    (THIRD  SERIES.)    Items.  —  1.  Merchandise  on  hand,  $3750.* 
•  -  2.  Bought  of  Arnold  &  Constable  on  %  ,  invoice  of  Silks,  at  $1500.  -  -  -  - 

.3.  Sold  for  cash,  40  yds.  Silk,  at  $2,  $  --  .....  4.  Sold  for  cash,  bill 

of  Hosiery  and  Domestics,  amounting  to  $125.  .....  5.  Sold  for  cash,  bill 

of  Fancy  Goods,  $212.50.  -  •        -  6*.  Sold  J.  Mott  on  %,  bill  of  assorted  Dry 
Goods,  amounting  to  $318.75.  .....  7.  Paid  cash  for  insurance  premium, 

covering  goods  in  store,  $50.  .....  8,  Bought  for  cash  53  pcs.,  2500  yds., 

Prints,  at  5|  cents  per  yard,  $  .....  9.  Sold  for  cash  512  yds.  Prints, 

at  If,  $  --  .....  1  0.  Bought  for  cash  3  cases,  2500  yds.,  Gingham,  at 

$  --  -          -  11.  Sold  for  cash  317  yds.  Gingham,  at  U?,  $  __ 


-  -  -  -  12.  Sold  John  Brown  on  his  note  at  10  ds.,  750  yds.  Prints,  at 
-f  .....  13.  Goods  on  hand  valued  at  $3800. 

Required,  the  gain  or  loss. 


VI.     HEAL    ESTATE    ACCOUNT. 

§44. —  1.  The  Object.  To  show  our  dealings  in  and  on 
account  of  real  estate. 

§45.  —  2.  The  Method.  The  account  is  debited  for  all 
costs  and  credited  for  all  returns ;  the  difference  between 
the  two  sides,  when  all  the  facts  are  shown,  will  be  the  gain 
or  loss. 

[NOTE. — The  costs  of  Real  Estate  cover  not  only  purchases,  but  all  subse- 
quent expenditures  for  improvements,  etc. ;  and  the  returns  cover  not  only 
sales,  but  income  from  rents  and  the  real  value  of  the  property  on  hand.] 

§46.  — EXAMPLE  OF  REAL  ESTATE  ACCOUNT. 

Dr.         Real  Estate.         Or. 
Items. 

1.  Bought  House  and  Lot  in  Seven- 

tieth St.  for  $35000. 

2.  Paid  for  rep>airs  on  same,  $1500. 

3.  Paid  for  insurance,  $10. 

4.  Paid  for  taxes,  $317.50. 

5.  Received  for  rent,  $3000. 

6*.  Sold  the  property  for  $37500. 


Oost. 

Returns. 

1 

35000 

5 

3000 

9 

1500 

6 

37500 

3 

10 

40500 

4 

317 

50 

36837 

60 

Returns  -  $40500 
Cost    -    -    80827.50 
Gain   •    •    $3670.50 


*  The  merchandise  on  hand  at  the  beginning  of  business  should  be  regarded  the  same 
as  a  purchase,  and  charged  for  its  purchase  value. 


16  ACCOUNTS. 

MATERIAL  FOR  PRACTICE. 

§47.  (PUWT  SERIES.)  In-ill-. —  /.  Bought  Ton.-mcut  projH-rty  in 
Spring  8t  for  $40000.--  '.'.  H-i.ht  Il.,.i-.-  an  I  Ix>t  in  Bank;*  St.  for 
$1000)1.  •'•'•  l'»iJ  for  repairs  i>n  Spring  St.  house, $876.  •  •  I 

CMh  lor  rvnt  uf  Spring  St.  house,  $fOO. 6.  Received  cash  for  rent  of 

Spring  St.  house,  $376. H.  Paid  Water  tax.  Banks  St.  house,  $15. 

7.  P»id  for  repairs.  Banks  St.  house,  $93.75.  -  .V.  IVid  taxes, 

Spring  St.  house,  $4i:..'-'>. .'*.  Paid  for  insurance  on  both  houses,  vis. : 

Spring  St.,  $75  ;   Banks  St.,  »<                    / ".   H.r.-iv.-d  f,-r  r.-nt  of  Banks  St. 
house,  $1SOO. 11.  Received  for  rent,  Spring  St.  house,  $:.r,<H>. 

/  .'.  Value  of  Spring  St.  property,  $4*600;  of  Banks  St.  property,  $; 
Required,  tk»  gain  or  lorn. 

§48.  (SECOND  SERIES.*)  Items.  —  1.  Have  on  hand,  Store  Build- 
ing in  Trcmont  St,  worth  $60000;  Dwelling  House  in  Beacon  St.,  worth 

$25000. It.  Bought  Warehouse  property  on  Charles  River  for  $150000 

cash. .7.  Received  cash  for  rent  of  Beacon  St.  house,  $1S5. 

4.  Paid  cash  for  insurance  on  Warehouse,  $750.  •  •          .">.   deceived  cash  for 
rent  of  Warehouse,  one  month,  $12uO.  -  H.  Paid  taxes  on  Tn-mont  St. 

property,  »«  7 .  Received  cash  for  rent  of  Tremont  St.  Stores,  $3000. 

-  -  -  -  .V.  Received  cash  for  rent  of  offices,  Treuiont  St.  Building,  $1500.  • 
9.  Warehouse  consumed  by  fire;    received  cash  in  settlement  of  louses, 

$76000. JO.  Estimated  value  of  Beacon  St.   property.  $25000 ;    of 

Tremont  St.  Building,  $65000;  of  Lot  on  Charles  River,  $64000. 

Required,  1ft,  the  gain  or  lots  on  the  property  together;  fd,  the  gain  or  lott 
on  eaeh  piece  of  property. 

§49.  (THIRD  SCRIES.)  Items.  —  1.  We  own  the  following  prop- 
erty: Farm  in  Dutchess  County,  with  improvements,  worth  $20000;  Dwelling 

-« in  East  Seventy  third  St.,  worth  $30000  /  Stock  Farm  near  Tn-nt.  >n. 
worth  $30000— Total.  $75000.  -          :'.  Paid  cash  for  fertilizers  for  Dutchess 

i  .inn,  $15<>.  :t.  Paid  cash  for  help,  Dutchess  Co.  Farm,  $75.  - 

4.  Paid  plumber's  bill  for  Seventy  .third  St.  House,  $1S5. 
cash  for  pasturage.  Stock  Farm,  $150.  -  -  •        '•'.  Paid  cash  for  insurance, 

Seventy  third  St.  House,  $86. 7.  Paid  cash  for  farming  implements, 

Dutches*  Co.  Farm,  $37.50. H.  Paid  cash  for  yoke  of  oxen,  Dutches* 

Co.  Farm,  I/A?.  -  .'/.  Received  cash  for  rent,  Seventy  third  St.  House, 

$7&o.  •  •  10.  Paid  cash  for  repairing  fences,  Stock  Farm,  $1 

1  I.  Paid  cash  for  blacksmith  bill,  Dutchess  Co.  Farm,  »«?  /  .'.   I-      i 

cash  for  horse  board,  Stock  Farm,  $t 59.  •  /.'!.  Sold  product-  for  cash, 

Co.  Farm,  $317.  •  It.    Sold  Seventy  third    St.    II  -use  for 

-  -  IS.  Paid  cash  for  stable  repairs,  Stock  Farm,  $75.  -  -  -  - 


•  TlMM  tnMactfoM  Bay  be  placed  to  one  account.  Real  EttaU,  or  to  Mparate  accouut-, 
M  Tnmoml ».  «or»,  £MOM  St.  Bo*tt,  etc.    Both  plan*  are  raggwted. 


SHIPMENT,     OR    ADVENTURE    ACCOUNT. 


17 


l(i.  Received  cash  for  produce,  Dutchess  Co.  Farm,  $513.75. 17.  Rec'd 

cash  for  horse  board,  Stock  Farm,  $432.50. 18.  Estimated  value  of 

Stock  Farm,  $22000. lit.  Estimated  value  of  Dutchess  Co.  Farm  and 

appurtenances,  $20000. 

Required,  the  gain  or  loss  in  each  enterprise. 


VII.     SHIPMENT,    OB    ADVENTURE    ACCOUNT. 

§  5O.  —  1 .  The  Object.  To  show  the  gain  or  loss  on  goods 
sent  away  to  be  sold  on  account  of  the  shipper. 

§  51.  —  2.  The  Method.  When  the  goods  are  shipped,  or 
expense  is  incurred,  the  account  is  debited  with  the  cost,  and 
when  an  account  of  the  sales  is  received  it  is  credited  with 
the  returns.  The  difference  will  be  the  gain  or  loss. 


52.  —  EXAMPLES  OF  SHIPMENT  ACCOUNT. 


Items. 

1.  Shipped  goods  from  store  to 
Jackson  &  Co.,  Philadelphia,  to  be  sold 
on  our  % ,  at  a  cost  of  $1575. 

2.  Shipped  from  store  to  Justin  & 
Poole,  Boston,  for  our  account,  5  hhda. 
Sugar,  at  a  cost  of  $1042.50. 

,'i.  Bought  for  cash  and  shipped 
Simpson  &  Mead,  Toronto,  for  our 
account,  15  brls.  Mess  Pork,  $315; 
paid  freight  on  same,  $35  =  $350. 

4.  Received  an  account  of  the  sales 
of  Philadelphia  shipment;  net  pro- 
ceeds remitted,  $1750. 

It.  Shipped  Brown  &  Co.,  Jackson- 
ville, from  store,  consignment  of 
Pork,  at  a  cost  of  $543.75. 

(i.  Received  account  of  sales  of 
shipment  to  Toronto,  the  net  pro- 
ceeds of  which  are  $317.50. 

7.  The  two  shipments  remaining 
unsold  are  valued  at  cost. 

[NOTE. — These  items  involve  four 
shipment  accounts,  two  of  which  only 
are  illustrated.] 


Dr.    Shipment  to  Philadelphia.     Or. 


Cost. 

Returns. 

1 

1575 

' 

1750 

Returns  -    -  $1750 
Cost    -    -    -     1575 

Gain 

-    -    -    $175 

Dr.        Shipment  to  Boston.        Cr. 


Cost. 

Returns. 

f 

1042 

50 

7 

1042 

50 

Canceled. 


18  ACCOUNTS. 

MATERIAL  FOR  PRACTICE. 

§53.  (Fnurr  SKBIKS.)  Items.  /.  shipped  fmm  our  Mt.x-k  to  Paul 
Brown,  Barton.  25  boxes  Cheese,  850  Ibs.,  at  20«*.  $  17n  .  |>ai<l  fr.-i-l.t  <>n  name 
to  cash,  flJ.Bff.  f  '-'.  >!..;  !••  d  .'."-..I.  Strnn-.  Portland,  from  our 

•took.  20  kegs  <>:  i..   Mutt.-r.  1190  llxi..  at  8&f,$5iL50. :t.  Paul  cash 

.surmncc  on  shipment  t»  Portland,  $5.21. 4.  H« •»••  i\  <•<!  arr.umt  of 

sail-*  of  Nhipini  nt  t<>  Boston,  tin-  net  proceed*  of  which  are  $152. 

S.    Bought  for  cwh  and   shipped   Hazsard  &  Brown,  St.   Louis,  \~i  hhds. 

Molasses.  1775  gab.,  at  80*.  f  -  <;.  Pniii  cash  for  insurance  and 

;.t  on  shipment  to  St.  Lonin,  $S7.50. 7.  Receivtil  nn-ount  of  Bales 

of  shipment  to  i'»rtliin<l.tli<>  net  pnxx^eds  of  which  are  stated  at  fG5:>. 
.V.  The  Molaswa  vhipped  to  St.  Louis  was  destroyed  tn  route,  by  tin-  burning 
of  the  freight  car.     Received  in  cash  from  Innurance  Co.  the  amount  called 
for  on  oar  policy,  $100O. 

Required,  th«  gain  or  lou  on  tlit  teteral  thipmenti. 

•  ."»!.      -  M  itiES.)    Items.  —  1.  Shipped  from  store  t..  <; 

land  &  Co.,  Buffalo,  for  our  account,  15  hhda.  Sugar,  14000  Ibs.,  at  5}?.  * 
T.  tierces  Rice,  7500  Ibs.,  at  4f,  $800;   20  bags  Coffee,  1G70  Ibs.,  at  15?, 
$350.50;  fr.-iid't  <-n  same,  $175— Total,  f  -          :'.   >l.i|  ]'«•.!  <i.  <M,  v. 

bnd  &  Co.,  Buffalo,*  for  our  account,  12  hlids.,  N.  O.  Molasses,  720  gals.,  at 
&J05.40.  -  -•.'{.  Bought  for  cash,  and  shipped  Bannister  It  Cross, 
Philadelphia,  for  our  account,  20  kegs  Orange  Co.  Butter,  1500  Ibs.,  at  29?, 
9436.  •  -  4.  Paid  cash  for  freight  on  above  shipment,  $10.  -  •  -  5.  Paid 
cash  for  insurance,  in  (r>i/,*it>/.  on  shipments  to  Buffalo,  $l.'f.  -  -  6*.  Kec'd 
an  account  of  the  shipments  to  Buffalo,  the  net  prom-ds,  lu-ld  by  c'.n-i^ii.M-. 
being  $tt75.  •  •  -  -  -  7»  The  value  of  the  property  shipped  to  Philudt -Iphia 
to  estimated  at  cost. 

Required,  the  gain  or  loti  on  the  tereral  thipmentt. 


VIII.     COMMISSION    AND    SERVICE    ACCOUNT. 
.  —  1.  The  Object.    To  show  the  returns  from  persona! 


services. 

55  ;M&.  —  2.  The  Method.    Usually,  the  entries  will  be  on  the 
credit  side  alone,  as  the  result  of  a  service  to  the  person  n  mh  rinur 
it  should  be  a  gain,  if  anything.     There  -may  be  offsets,  how» 
which  should  :ij.jM-:ir  <>n  the  debit  side.     When  senir.-  produce 
,-t  turns.    t!i«-  acfount   should    \><-   m-d  ilcd.    ;ind   \vli«-n    tli.v 

•  IM  IB*  dMkrcat  •blpmeou  to  thU  firm  be  entered  to  one  account,  under  the  bead  of 

to] 


COMMISSION    AND    SERVICE    ACCOUNT. 


19 


subject  us  to  cost,  it  should  be  debited.     The  difference  will 
ordinarily  be  a  yain,  but  may  possibly  be  a  loss. 

[It  may  seem  anomalous  that  one  can  lose  by  rendering  service ;  and  yet 
§uch  a  thing  is  possible.  The  intent,  and  the  legitimate  outcome  of  service, 
iiowever,  is  to  gain.] 


57.  — EXAMPLE  OF  SERVICE  ACCOUNT. 


Dr. 


Profession. 


Or. 


Cost. 

Returns. 

0 

5 

1 

37 

50 

4 

10 

3 

117 

50 

6 

30 

5 

93 

75 

8 

25 

7 

125 

10 

50 

9 

59 

75 

120 

433 

50 

Returns  -   $433.50 
Cost     -    -      120 
Gain   -   - 


Items. 

(THE  BUSINESS  OF  A  DOCTOR.) 

1.  Received  cash  for  professional 

services,  $37.50. 

2.  Paid  cash  for  instruments,  $5. 

3.  Received  cash  for  surgical  oper- 

ation and  attendance,,^  17. 50. 

4.  Paid  cash  for  office  boy's  serv- 

ices, $10. 

5.  Rendered  bill  to  John  Drew  for 

attendance  on  family,  $93. 75. 
fit  Paid  cash  for  horse  board,  $30. 
y.  Received  cash  during  the  week 

for  office  practice,  $125. 

8,  Paid  cash  for  medicines,  $25. 

9.  Received   cash   for  medical  at- 

tendance, $59.75 
10.  Paid  cash  for  office  rent,  $50. 


MATERIAL  FOR  PRACTICE. 

§  58.     (FIRST  SERIES.)     THE  BUSINESS  OF  A  LAWYER.     Items.  — 

1 .  Received  cash  as  retaining  fee  in  the  case  of  Rollins  vs.  French,  $50. 

2.  Paid  amanuensis  cash,  $25. 3.  Received  cash  in  full  for  services 

in  the  Jones'  Will  case,  $975. 4.  Paid  office  rent,  $50. -  5.  Paid 

cash  for  attorney's  assistance,  $75. ft.  Received  cash  in  full  for  serv- 
ices in  Rollins  vs.  French,  $375. 7.  Paid  cash  for  copy  of  Revised 

Statutes,  $7. S.  Paid  cash  for  stationery,  $17.50. it.  Received 

cash  for  services  in  searching  title  and  drawing  up  deeds,  $75. 

Required,  the  net  returns. 

§  59.  (SECOND  SERIES  )  THE  BUSINESS  OF  A  REAL  ESTATE  AGENT. 
Items.  —  1.  Received  cash  of  Mrs.  Folke,  commission  for  selling  her  house 
in  West  Nineteenth  St.,  $125.  -  -  2.  Paid  cash  for  stationery,  $6.50. 

3.  Paid  cash  to  office  boy,  $5. 4.  Received  cash,  commission  for 

renting  house  in  Fifth  Ave.,  $67.50. 5.  Received  cash,  commission  on 

auction  sales,  $117.50. ft.  Paid  Lawyer's  fees,  $20. 7.  Rented 

Goldsmith's  house  in  West  Tenth  St.,  for  which  he  owes  us  commission,  $90. 
•  •  -  -  S.  Received  cash  for  my  percentage  on  collections  this  week,  $210.  -  -  -  - 


N 


f>.  Biywlred  nuh  for  making  out  conveyance,  $17.50. 1O.  Paid  gaa 

ii  cash,  $:.  I  I .  Hi-celved  cash,  commission  for  Bale  01 

lot  on  Western  Boulevard,  $57. 

,',';-. 


f'r. 


IX.    INTEREST    ACCOUNT. 

gOO.  —  1.  The  Object.     To  show  the  t/ttin  from 

and  tl.'   /ON.S  iVi.ni  horrowinjj  mone\. 

55O1.  — 2.  The  Method.    Win  n  \\c  use  other  jM-i.plt-'s  money 

we  /mi/  for  the  us*.-,  ami  when  other  people  use  our  money  we  get 

I   for  the  u«e.      In  the  lirst  case,  interest  COsfx  us  \alue,  and 

in  the  second,  interest  produces  or  iTfitnis  us  value.     When  we 

/my  for  interi'.-t  \\e  tic/n't  the  account,  ami  when  u.    t/ct  jxtifl 

<-i'<«iit  •.    The  difference  between  the  lideB  wfl]  tim-.at  any 
time,  .-how  the  gain  or  loss. 

§62.  — EXAMPLE  OF  INTEREST  ACCOUNT. 

ItoniH.  Dr 

1 .  Paid  casti  for  our  note  of  $2000, 
favor  of  John  Mills,  and  for  interest 
thereon,  (75. GO.  -  •  ?.  IVi<l  cash  for 
oar  note  of  $1000,  due  60  days  hence, 
IMS  interest  thereon,  910*  .'{.  Ii<- 
erived  cash  for  stated  interest  due  on 
on  note,  £/.''."".  -  -  -  4.  Received  cash 
for  interest  on  Government  lx>nds, 
$15O.  •  •  -3.  Paid  cash  for  oar  note  of 
$1000,  doe  in  45  days ;  allowance  for 
discount.  ,<  ^  '..  leash 

foi  Jones's  note  of  $5000  due  in  60  ds., 

less  discount  for  the  time,  $5O.\ 

7.  Bought  for  cash  Stuart's  n»t<-  <>f 
$4000.  doe  in  70  ds..  at  a  discount  of  &f'.v;r.§ 
Rfquirtd.  the  gain  or  lou  on  interett. 


Oe* 

Returns. 

1 

75 

60 

10 

6 

.Ml 

. 

19 

50 

Hi 

80 

; 

tao 

6 

15 

7 

M 

67 

t41 

IT 

Returns  -    -  »-.Ml  17 
Cort    -    - 
Gain  - 


•  If  we  pay  a  not*  before  It  i<  doe,  the  penon  to  whom  the  money  IB  paid  hat  the  vtt 
thereof  for  tbc  anexptred  time,  and  pa  ft  tw  for  It  in  abatement  of  the  amount  payable  at 


t  At  the  end  of  40  day*,  when  oar  not*  U  due,  we  are  to  pay  for  It  $1000.  Ry  paying  for 
It  now.  MUTMderiaff  the  OM  of  oar  money  for  45  day »,  we  get  an  abatement,  or  discount, 
of  915-reaOjr  rwricv  $15  for  Interwt. 

$  ThU  note  pted(W  to  a»  $9000  In' 00  day*.  A*  we  want  the  money  now,  we  are  r< 
ic  par  fur  the  aM  of  U  for  th«  nnexplrcd  time,  the  Intercut  rate,  *p  co»t« 

•  •:• 

|  ThU  transaction  la  •imllar  to  that  of  the  5th,  the  only  dlftVrenrr  l»-int:  that  in  the 
prrrto**  e**e  we  dUeoant  oar  own  note,  and  in  thU  we  discount  another's.  IK  )><>th  in^taaew 
we  get  paid  for  the  OM  of  our  money. 


SECURITIES    ACCOUNT.  21 

MATERIAL  FOR  PRACTICE. 

§63.  (FIRST  SERIES.)  Items.  —  1.  We  have  on  hand  notes  upon 
which  interest  has  accumulated, as  follows:  P.  Jones's  note  of  $5009, interest, 

$75 ;  H.  Durand's  note  of  $1500,  interest,  $50* 2.  Bought  for  cash 

Hiram  Power's  note  of  $3000,  due  in  60  ds.,  at  a  discount  of  $30. 

3.  Sold  for  cash,  P.  Jones's  note  of  $5000,  with  interest  on  same,  $90. 

4.  Received  cash  for  our  note  of  $10000,  due  in  90  ds.,  less  discount  for  the 

time,  $150.  \ 5.   H.  Durand  paid  for  his  note  of  $1500,  and  interest 

thereon,  $SO.  -----  6.  Received  cash  for  interest  on  Government  bonds,  $175. 
7.  Paid  cash  for  semi-annual  interest  on  mortgage,  $30. 

Required,  the  gain  or  loss. 

§  64.  (SECOND  SERIES.)  Items.  —  1.  Have  on  hand  the  following 
notes  with  accumulated  interest,  as  stated  :  John  Seaman's  of  $2000 — interest, 
$17.50;  Robert  Holt's  of  $1500,  interest,  $10.30;  James  Harrington's  of 

$3000— interest,  $14.75. 2.  Bought  for  cash  J.  Simpson's  note  of  $2500, 

due  in  90  days,  at  a  discount  of  $37.50. 3.  Received  cash  for  Robert 

Holt's  note,  $1500,  and  interest  on  same,  $19.30. 4.  Got  our  note  of 

$2000  discounted  for  30  days,  receiving  cash  for  the  face,  less  interest  for  the 

time,  $10.  -----  5.  Paid  cash  for  interest  on  mortgage,  $27.50. 

6'.  Received  credit  for  interest  on  balance  in  Savings  Bank,  $62.50. 

7.  Paid  net  cash  in  full  of  J.  Astor's  account  of  $1500,  due  three  months 

hence ;  abatement  for  interest,  $22.50. 8.  Received  cash  for  John 

Seaman's  note  of  $2000,  and  interest  on  same,  §32. .*>.  We  hold  James 

Harrington's  note  of  $3000,  on  which  there  is  accumulated  interest  of  $25. \ 

-  -  1O.  We  hold  J.  Simpson's  note  of  $2500,  having  30  days  to  run. 
The  interest  for  that  time  is  $12.50.% 

Required,  the  gain  or  loss. 


X.    SECURITIES    ACCOUNT. 

§65.— 1.  The  Object.  To  show  the  gain  or  loss  from 
dealing  in  securities.  || 

*  Interest  account  should  be  debited  with  these  amounts  for  the  same  reason  that 
Merchandise  account  is  debited  with  the  value  of  merchandise  on  hand  at  the  beginning  of 
business.  The  transaction  is  equivalent  to  buying  the  notes  with  Interest  added. 

t  We  paid  $150  for  the  use  of  $9850,  ninety  days. 

$  This  item  should  be  entered  as  inventory  on  the  credit  side  of  the  account. 

§  We  have  already  credited  Interest,  the  full  drscorint  on  this  note  for  90  days,  $37.50. 
There  are  thirty  days  yet  uncxpircd,  and  we  should,  therefore,  debit  the  account  with  tlio 
interest  for  this  time. 

I  By  securities  is  meant  any  form  of  written  guarantee  for  the  payment  of  money. 
These  are  of  various  kinds,  and'  may  include  even  promissory  notes  and  acceptances  ;  but 
the  class  of  securities  dealt  in  are  usually  the  i?sue,  either  in  the  form  of  stocks  or  of  bonds 


§66.  —  2.  The  Method.    \\  hen  stocks  or  l>onds  :uv 
oroost  anything,  tin- account  should  In-  ti<hii<-il  iritt) 
and  when  sold,  or  \vlu-n  they  produce  value  in  any  way.  tin-  account 
should  1"  »  ri>/itrtf  \\ith  the  returns.     The  ililleivncc  \\ill  be 

til.    */f/M/    .'I'  /o.s.s. 


Cr. 


§67.  — EXAMPLE  OF  SECURITIES  ACCOUNT.* 

Item*. 

Dr. 


COM. 

Return*. 

1 

5010 

S 

m 

50 

S 

978 

5 

40 

4 

1265 

. 

6 

M 

7 

tm 

8 

46 

•  4M 

9 

Bra 

•»•» 

10 

1.  Havo  on  hand  4000  IT.  B.  Repis 
torn!  8's.f  at  101 J. $4080;  1000  Mi. -hi- 
gmn  Central  Stock,  at  95.  $950— Total, 
$5010.  -  -  -  2.  Bought  for  rash  200 
Mutual  Un.  Tel.  Stock,  at  21J,  $48 ; 
1000  St.  Paul  ft  Duluth  (preferred),  at 
W,$980-Total.#>;.J  -  -  3.  Sold  for 
cash  500  St.  Paul  ft  Duluth  (preferred), 
at  94}.  $47S.SO.  •  •  4.  Bo't  for  cash 
1000  N.  Y.  Central  R.  R.  Stock,  at  126}, 

$1S66. S.  Received  cash  <livi- 

dend  on  Mich.  Central  Stock.  4  per 
cent,*J0.  -  -  -  «.  Sold  for  caah  Mich. 
Central  R  R  Stock.  1000,  at  W\,$965. 
:  .  Bought  fur  cash  2500  Oregon 
Improvement  Mortgage  Bonds,  at  90, 

-  -  8.  Sold  for  cash  200  Mutual  Un.  Tel.  Stock,  at  28,  $46.  -  -  -  - 
9.  Have  remaining  on  hand  4000  U.  8.  l!.--i-t.-iv<l  :;v.  worth  102,  $4080 ; 
1000  N  Y  <  Vntral  Stock,  worth  $124,  $1240;  500  St.  Paul  &  Duluth  (pre- 
ferred), worth  96,  $480 ;  2500  Oregon  Improvement  Mortgage  Bonds,  worth  Ul, 
$2275— Total,  $8075. 

§68.  —  Instead  of  keeping  a  general  Securities  account,  sep- 
arate accounts  may  be  kept  with  each  class  of  securities.  The 
following  examples  will  show  this  method.  [The  items  are  the 
same  as  those  used  in  the  general  account.] 

of  tacofporaled  compaatet.    The  diMinrtion  tx-tween  etocks  and  bond*  !•  an  important  din 


Returns    •  99608.50 
Cost     -    -     MflS 
Gain    -   •    tlOOJO 


i ;  »U>ck»are  the  proprietary  »harr«  of  corporate  cnterprlw*,  represent  ii.i:  the  invested 
capital,  and  depending  for  Income  upon  the  financial  cncceM  of  the  enterprise*,  while  bond* 
are  the  bill*  parable  of  the  corporation  iwned  to  guarantee  the  payim-m  <•(  imn..^.-! 
atoacy.  with  intere*t  thereon.  Thu«.  the  Inronx-  tn,m  -han-«  or  Mocks  i*  thn.ii.-ii  tin- 
rmrnio|«or  the  bfwinew  in  form  of  dividend*;  and  the  Income  from  bond*  i«  In  tlir  h)i:i|»- 
oT  imerart.  flecaritin  arc  bongbt  and  «old  on  •peculation,  the  same  a-  •  and 

r    .  •    •  .  ...:,.  - 

•  Exavnfa*  are  ben;  g\\i-n.  flrnt  of  a  KMienl  Sorurltle« account,  and  next  of  eeparato 

r  diMinctire  lltlen,  of  the  nevcral  ncctirlt leu. 

S.  B^rlMrred  r§"  are  tbc  8  per  cent  Regtotered  Bond*  of  the  Government.    The 
I  vafcM  U  |«HO,  tbe  real  value,  at  Ij  percent  premium,  $4000. 


SECURITIES     ACCOUNT.  23 

Dr.         U.  S.  Registered  3's.         Cr.         Dr.     Michigan  Central  Stock,       Cr. 


Cost. 

Returns. 

1 

4060 

9 

4080 

Cost. 

Returns. 

1 

950 

5 

40 

6 

965 

Dr.        Mutual  [In.  Tel.  Stock.        Or. 


Cost. 

Returns. 

2 

43 

5 

46 

MATERIAL  FOR  PRACTICE. 

§69.  —  Items.  —  1.  Bought  for  cash  1000  Chicago  &  Alton  R.  R. 

Stock  at  129-|,  $1295. 2.  Bought  for  cash  2500  Missouri  Pacific  R.  R. 

Stock,  at  99|,  $2490.62. 3.  Sold  B.  Scott,  on  %,  500  Chicago  &  Alton, 

at  131£,  $656.25.  - 4.  Bought  of  Roberts  &  Co.,  on  %,  1500  Delaware  & 

Hudson  Canal,  at  107^,  $1612.50. 5.  Received  cash  dividend  of  4  per- 
cent on  2500  Missouri  Pacific,  $100.  -----  6.  Bought  for  cash  2000  Delaware 
&  Hudson  Canal,  at  106,  $  *  -  -  -  7.  Bought  for  cash  2000  Chicago  & 

Alton,  at  132,  $  8.  Sold  for  cash  3500  Delaware  &  Hudson 

Canal,  at  102i,  $ 9.  Bought,  on  our  note  at  10  ds.,  2500 

Georgia  Central  (guaranteed)  First  Mortgage  Bonds,  at  111,  f  

1O.  Received  cash  for  semi  annual  interest  on  Georgia  Central  1st  Mortg. , 

3£  per  cent  on  $2500,  $87.50. 11.  Sold  for  cash  1500  Georgia  Central 

1st  Mortg.,  at  113,  f  12.  Bought  for  cash  3000  Met.  Elevated 

R.  R.  Stock,  at  85,  $ 13.  Sold  J.  Paton,  on  his  note  at  30  ds., 


1500  Met.  Elev.,  at  83i,  $. 


14.   Received  semi-annual  cash 


dividend  of  5  per  cent  on  1500  Met.  Elev.,  $75. 15.  Sold  for  cash  1500 

Met.  Elev.,  at  87J,  $ 16.  Have  on  hand  2500  Chicago  &  Alton, 

worth  129  ;    1000  Georgia  Central   (preferred),  worth  117^ ;   2500  Missouri 
Pacific,  worth  97J. 

Required,  the  gain  or  loss  on  the  securities  as  a  whole,  and  on  the  separate 
classes. 

*  Railroad  stocks  are  issued  in  shares  of  $100  each.  Instead  of  stating  the  ^nantity  of 
purchase  and  sale  in  this  way,  however,  we  give  the  nominal  price  of  the  entire  transfer. 
Hence,  instead  of  paying,  as  in  this  instance,  20  shares  of  Del.  &  Hud.  Canal,  at  $106  per 
chare,  we  say,  in  effect,  $2000  of  nominal  value  ill  Del.  &  Hud.  Canal  at  a  premium  of 
6  per  cent. 


ACCOl 


XL    INCIDENTAL    ACCOUNTS. 

§7O.  —  The  purposes  of  business  often  iv.jiiiiv  the  Keeping 
of  separate  accounts  \\i\\\  the  \anous  departments  of  out  las  «>r 
expcn*',  embracing  items  which  belong  to.  and  an-  a  part  of,  tin- 
main  business  account;  such,  for  instance,  as  nut.  clerical  or 
other  labor,  office  expenses,  fixtures,  commission  (causing  out  la\  ), 
interest  (when  it  is  an  expense),  etc.  Smietimcs  HK-.M-  items,  or 
the  most  of  them,  an-  brought  into  one  account.  K\pcn-r;  ami 
unless  there  are  particular  reasons  for  keeping  them  separate, 
this  is  a  proper  course  to  pursue.  The  Expense  account  is  thus 
an  account  of  convenience,  and  may  be  said,  in  general  terms,  to 
contain  items  of  e.v/>tit<liture  not  charged  to  any  ot/tcr 
account.  * 

§  71.  —  There  are  cases,  also,  where  a  general  Expense  account 
would  seem  to  be  absolutely  necessary—  Midi,  for  inMame,  as  in 
a  business  having  co-ordinate  departments  or  divi-ion-.  and  where 

i  items  as  rent,  salaries,  gas,  and  stationery  apply  to  all  the. 
departments  without  the  means  of  knowing  at  the  time  what 
would  be  an  equitable  apportionment.  It  is  custonian,  under 
such  rircum.-tances,  to  keep  a  general  K\pen-e  account  during 
the  running  of  the  business,  and  at  the  end  of  each  ti.M-al  period  to 
adjust  the  proportions  according  to  the  ascertained  !'.. 

§72.  —  What  may  be  said  of  Expense  account,  therefore,  may 
be  said  of  anyone  of  the  accounts  embraced  under  the  general  title 
of  "incidental."  The  first  thing  that  .-liould  be  said  i.«  that  it  is 
not  expected  that  any  account  of  this  class  will  show  a  L-ain  :  and 
if  such  a  thing  should  by  any  possibility  occur,  it  will  appear 
that  tin-  items  would  more  properly  have  been  placed  in  another 
account.  However,  the  game  rule  for  debits  and  credit-  which 
applies  to  any  business  account  applies  here.  \i/,.  :  they  are  tlihitrd. 
for  coftt  and  i-rcilitril.  for  returns  —  the  difference  being  a  net 
lOMor  a 


•  The  Kzpeaw  kecnant  to  not  HMMptihli-  of  •  nut  dcflnltlon,  for  the  rraHon  that  xcarcely 
•ny  two  p«T*oiu  in*  it  under  the  Mmi-  lnnii.it  ion-     Tn  f.iy  that  it  r.iv.-r-  the  cwl  of  carry  Ing 
on  the  bwhMM,  would  (care  nothing  to  be  chart"--!  to  Mi-rrhnndiRe,  or  any  m  i,.-r  <>f  tli< 
bwtoeM  aeeoiuiU—  «•  all  oattajr,  of  whatever  kind,  b  for  the  parpote  of  "cnrrrin^  on  tin- 
bwiMW.M    If  aa  Bzpanae  aceoont  !•  kept  at  all.  ii  in  of  little  innmpnt  «  I 
phHed  b>  It.  »o  lonr  a>  lt«  Hmlu  are  clearty  onderrtood,  and  tl  '•  ntl* 

tod  to  rappoM  that  an  Ezpenae  b*A*«,  mi|rbt  pOMlbljr  be  a  good  biutoeM  to  follow. 


INCIDENTAL    ACCOUNTS. 


73. —  EXAMPLE  OF  EXPENSE  ACCOUNT. 

Dr.  Expense.  Cr. 


Items. 

1.  Paid  cash  for  stationery,  $25. 

2.  Paid  cash  for  gas  bill,  $18.75. 

3.  Paid  cash  for  rent,  $125. 

4.  Paid  cash  for  janitor's  services, 

$50. 

5.  Paid  cash  for  repairs,  $17.50. 
G.  Paid  for  postage  stamps,  $5. 

7.  Paid  for  revenue  stamps,  $3. 

8.  Paid  for  advertising,  $45. 

9.  Paid  for  coal,  $62.50. 

10.  Received  cash  for  desk-room  in 
office,  $15* 


Cost. 

Returns. 

1 

25 

10 

15 

2 

18 

75 

3 

125 

4 

50 

5 

17 

50 

6 

5 

7 

3 

8 

45 

9 

62 

50 

351 

75 

Cost     -    -    $351.75 
Eeturns    -       15 
Loss      -    -    $33C.75 


MATERIAL  FOR  PRACTICE.! 

§  74.  —  Items.  —  1.  Paid  cash  for  office  fixtures,  $210. 2.  Paid 

cash  for  books  and  stationery,  $17.50. 3.  Paid  cash  for  clerk  hire, 

$87.50. 4.  Paid  'cash  for  reflooring  warehouse,  $150.  -  -  •  -  -  5.  Paid 

gas  bill,  $17.504 O.  Paid  coal  bill,  $22.  \ 7.  Paid  for  rent, 

three  months  in  advance,  $500.  -  -  -  -  8.  Paid  cash  for  office  safe,  $325.  -  -  -  - 

/>.  Paid  for  extra  services  in  moving  goods,  $37.50. 1O.  Paid  for 

insurance  on  goods  in  store,  $02.50. 11.  Paid  for  insurance  on  goods, 

in  transitu,%  $25. 12.  Paid  Janitor's  wages,  $50. 13.  Paid  for 

new  Ledger,  $19.50. 14.  Paid  for  advertising,  $45. 15.  Paid 

for  printing,  $15.  J Hi.    Paid  for  repairing  skylight,  $150. 

17.    Paid  for  gas  fixtures,  $43.75. 18.    Paid   for  office  partition, 

*  This  item  will,  of  course,  go  to  the  credit  of  Expense  account,  the  effect  being  to 
reduce  our  rent  expenses.  In  the  same  way  we  might,  relet  our  spac,e  at  such  favorable 
rates  that  instead  of  our  rent  being  a  net  outlay,  it  might  be  a  source  of  profit.  This  is 
simply  a  possible  contingency,  and  not  in  any  sense  the  idea  of  an  Expense  account. 

t  These  items  may  be  written  up  first,  under  a  general  Expense  account,  and  next 
under  distinct  heads,  viz. :  Rent,  Fixtures,  Stationery,  Repairs,  Services,  Insurance,  and 
Expense. 

J  Items  not  provided  for  by  special  accounts  should  go  to  Expense. 

§  That  is,  goods  shipped  to  us,  as  per  our  order.  The  insurance  is  against  loss  by 
fire  or  shipwreck. 


ACCOUNTS. 


10.  The  value  of  article*  charged  to  Fixture*  account  10 
placed  at  $SOO.\  .....  ~0«  Tho  vain.-  uf  unvxpired  rent  which  haa  1>«  n 
paid  (orbtlCt.tf.t 

/topui'mf,  Uu  condition  qftto  tettral  aecnint*. 


XII.     PROPRIETARY    ACCOUNTS. 

§75.  —  The  relation  which  a  proprietor  sustains  to  his  busi- 
ness is  personal,  and  the  account  \\liich  shows  that  relation  is 
kept  like  any  iKTsomil  account.  Its  object  is  to  denote  the  pro- 
prietor's inn  *tnn  at  or  deficiency  —  in  other  words,  what  the 
business  owes  him,  or  what  he  owes  the  business.  The  account 
is  cr«li(c<l  with  all  sums  i  n  rcstnl  and  ili'hitnl  with  all  sums 
irit/nlrrurn,  the  difference  being  the  net  investment  or  the, 


§  76.  —  This  is  true  whether  there  be  one  proprietor  or  more. 
It  is  sometimes  the  custom  in  case  of  a  single  proprietor  to  kf-p 
the  investment  account  under  the  title  of  "Stock,"  rather  than 
the  proprietor's  name;  but  there  is  no  good  reason  for  it,  and  the 
practice  is  apt  to  mislead  a  learner.  In  partnerships,  the  invest- 
ment is  entered  under  the  partners'  names  ;  and  in  joint  stock 
business,  under  the  general  title  of  "  Capital  Stock." 

g  77.  —  It  is  proper,  in  any  case,  for  a  proprietor  to  have  t  \vo 
accounts  —  one,  an  investment  account,  and  the  other,  a  private 
or  strictly  personal  account  In  such  case  the  investment  account 
would  contain  only  the  more  permanent  items  which  aliVet  the 
in\e-tnient.  and  the  private  account  would  denote,  the  temporary 
dealings  of  the  proprietor  with  his 


•  This  Item  present*  one  of  the  difficulties  that  1*  likely  to  occur  In  keeping  t-cparate 
•m     There  may  ea»ily  be  a  doubt  an  to  whether  it  should  be  charged 


to  Repair*  or  Klxtnre*.    The  question  mu»t  be  settled  arbitrarily,  and  according  to  the  best 

t  The  Fixture*  accoant  U  meant  to  cover  that  part  of  the  ezpcnaet  of  th* 
rated  by  It*  title,  bat  it  doe*  not  follow  that  the  amount  paid  for  fixture*  IK  an  absolute  loss. 
la  estimating  the  loas  It  la  proper  to  credit  the  account  with  the  value  Inhering  in  the 
property— that  i».  what  the  property  conk!  be  sold  for. 

!U*t  account  baa  been  debited  with  the  cost  of  rent  for  three  month*,  and  we  an 
•UtaHtiaf  the  gates  aad  losses  tor  only  two  months,  It  I*  plain  that  tin  , ..-:  f..r  the  un<  z- 
ptoad  moot*  aboald  be  deducted— in  other  word*,  credited,  leaving  the  account  to  show  the 
act  cos!  for  the  two  month*. 


PROPRIETARY    ACCOUNTS. 


78.  — EXAMPLES  OF  PROPRIETARY  ACCOUNTS. 


1.  SINGLE  PROPRIETORSHIP. 
(One  account.) 

Items. 

1.  The  proprietor  invests  $5000  cash. 

2.  Draws  out  for  private  use,  $50. 

3.  The  business  assumes  to  pay  a 

debt  for  him  of  $150. 

4.  He  transfers  to  the  business  from 

his  private  Ledger  personal  ac- 
counts (receivable),  as  follows  : 
H.  E.  Hibbard,  $500*;  D.  R. 
Lilibridge,  $325. 

5.  The  net  gain  of  the  business  is 

$2100,  \vh_ich  is  to  remain  as 
additional  investment. 


2.  PARTNERSHIP— Two  PROPRIETORS. 

(One  account  each.) 
The  partners  are  C.  Monroe  and  J. 
Parker. 

Items. 

1.  Monroe  invests  cash,  $2500. 

2.  Parker  invests  his  stock  of  goods, 

valued  at  $5000. 

3.  Monroe  makes  over  to  the  concern 

certain  notes,  worth  $575. 

4.  Parker  draws  out  for  personal  use, 

$200. 

5.  The  concern   assumes  a  private 

debt  of  Monroe's  to  Baldwin  & 
Co.  of  $3000. 

G.  The  concern  owes  Monroe  on  sal- 
ary, $150  ;  and  Parker,  $300. 

7.  The  net  loss  of  the  business  is 
$1500.  Monroe's  share  two- 
thirds  ;  Parker's  one-third. 


Dr. 


Proprietor. 


Or. 


Withdrawals. 

Investments. 

g 

50 

1 

5000 

3 

150 

4 

825 

200 

5 

2100 

7980 

Investments  -  -  $7925 
Withdrawals  -  200 
Net  investment  •  $7725 


Dr. 


C.  Monroe. 


Or 


Withdrawals. 

Investments. 

5 

3000 

1 

2500 

7 

1000 

S 

575 

4000 

6 

150 

8226 

Withdrawn  -  -  $4000 
Invested  -  -  -  3225 
Deficiency  •  •  $775 


Dr. 


J.  Parker. 


Or. 


Withdrawals. 

Investments. 

4 

200 

t 

5000 

7 

500 

G 

300 

700 

6300 

Invested  -  -  -  $5300 
Withdrawn  -  .  700 
Net  investment 


Amif.\T8. 

MATERIAL  FOR  PRACTICE. 

§79.    (Fi««T  SERIES.)   SIM.I  i  I'HOPKIKTOR— r«» account*'   li<-m-.. 

— /.  Proprietor  (James  Smith)  invest*  ca»h,  ffttuv. 2.  Adds  t 

investment  notes  and  personal  account-  amount  ing  to  $1676.-  •  •  •  tf.  Draws 

oat  for  private  use,  $160. /.  I'UIH  in  cash,  on  private  account,  $500. 

"..  »'..n,vt««il  tin  private  accounts  belonging  to  proprietor,  $17f>. 

ii.  Paid  a  personal  bill   tor  propri.  tor,  $87.60. 7.  Transferred  from 

private  account  to  investment  account,  $kOO.\ S.  Tin-  n.-t  lot*  of  the 

'!,.     ;:.\,   .;m, •!,-    :..-.,,-   |,  .lurni   In    thai   alii-aiiil. 

Required,  the  interment  at  doting. 

§  8O»  (SECOND  SERIES.)  Two  PHOPRIETORS — One  acn»int  «t<-h.  The 
partners  are  O.  W.  Brown  and  C.  H  I'.mi.  K.-IIIX.  /.  <;.  \V.  Brown 

invests  /75«?  cash. ij.  «' .11.  Peirce  invests,  in  good  \v\\l,$4~i(#>. 

.7.  Peirce  draws  out  cash,  $150. 4.  Paid  a  private  drbt  f..r  IVirce, 

$i:~>. 3.  Brown  turns  in  some  outstanding  accounts  of  his  former 

business,  amounting  to  $1750. f».  Brown  draws  out  cash,  $375.  -  -  -  -  - 

7.  IVirce  renders  an  account  of  extra  service,  for  \vhi< -h  In*  is  allowed  #75. 

*.  Paid  a  private  debt  for  Brown  of  $17.86. it.  On.-  <rf  the 

accounts  rendered  by  Brown  (5th  item)  proves  worthless,  and  is  charged  back, 

$1S5. 1O.  Peirce  pays  in  cash,  $114- 1 1'  Brown's  undrawn 

salary  for  the  month  is  $SOO.  -  •  I  ?.  Amount  due  Peirce  for  monthly 

salary.  $150. 7.7.  Accepted  a  draft  of  $1000,  drawn  on  IVinv. 

/  /.  I'h.-  net  gain  of  the  business  is  $1575,  of  which  Brown  is  entitled  to  f 
and  Peirce,  |. 

Required,  the  net  investment  of  each  partner  at  the  dote. 

§81.  (THIRD  SERIES.)  THREE  PROPRIETORS  —  Each  tiro  aecovntt. 
The  partners  are  Chas.  Brown,  James  Moore,  and  Robert  Mawm  Itoins. — 

1.  James  Moore  invests  in  cash,  $7000. 2.  Charles  Brown  invests  in 

notes,  $7500. .V.  Robert  Mason  invests  in  merchandise,  $8000.  • 

4.  Robert  Mason  draws  out  on  private  account,  $150. £.   Charles 

Brown  adds  to  his  investment,  cash,  $500. f».  Paid  private  bill  for 

Robert  Mason,  $75. 7.  James  Moore  adds  to  his  investment,  cash, 

$ lOOt >  s.  James  Moore  draws  out  on  private  account,  $15o.  -  -  - 

.'/.  ('has.  Brown  adds  to  his  private  account,  cash,  £.  /'>.  Paid 

private  hill  for  Chas.  Brown,  $200.  ••  11.  Th<-  gains  in  the  business  are 

$HOO,  each  partner  to  be  credited  on  his  private  account  for  one-third 
thereof. 

Required,  the  landing  of  the  intettmcnt  account*  and  the  private  account! 
of  taek  of  the  proprietort. 


(Proprietor),  and  current  temporary 


flMHap  la  th*  other,  uln*  UM  proprietor**  naa 

t  Debit  priraic  account  (J»mc«  Smith)  and  credit  Investment  account  (Proprietor). 


STATEMENT    OF    PRINCIPLES.  29 

§82.— STATEMENT    OF    PRINCIPLES. 

1.    CLASSIFICATION  OF   ACCOUNTS. 

1.  Accounts  are  of  two  classes ;  one  class  showing  resources  and  liabilities, 
and  the  other  showing  gains  and  losses. 

2.  The  first  of  these  two  classes  embraces  (1)  CASH  —  exhibiting  the 
amount  on  hand  ;  (2)  PERSONS — showing  what  individuals  owe  the  business, 
and  what  the  business  owes  individuals  on  open  account ;  (3)  NOTES  AND 
ACCEPTANCES  (under  the  heads  of  Bills  Receivable  and  Bills  Payable*) — 
showing  what   is   owing   to   the  business   and  what  the  business  owes  on 
written  promises. 

3.  The  second  class  embraces  all   records  of  active  operations  which 
indicate  the  character   of  the  business,  and  point  out   the  sources  of  its 
prosperity  or  its  adversity.      Among  the  accounts  of  this  class  are  MER- 
CHANDISE, REAL  ESTATE,  ADVENTURES,   EXPENSE,  INTEREST,  SERVICES, 
etc.,  etc. 

4.  Accounts  belonging  to  the  first  class  are  appropriately  called  Financial 
Accounts,  or  ACCOUNTS  OF  FINANCE,  and  those  belonging  to  the  second 
class,  Business  Accounts,  or  ACCOUNTS  OF  BUSINESS. 

2.    DEBITS   AND   CREDITS. 

1.  Cash  account  is  debited  when  money  is  received,  and  credited  when 
money  is  paid  out. 

2.  Bills  Receivable  account  is  debited  when  other  people's  notes  and 
acceptances  are  received,  and  credited  when  they  are  disposed  of. 

3.  Bills  Payable  account  is  credited  when  our  obligations  are  issued, 
and  debited  when  they  are  redeemed. 

4.  A  Personal  account  is  debited  when  the  person  gets  into  our  debt, 
or  we  get  out  of  his,  and  credited  when   we  get  into  his  debt,  or  he  gets 
out  of  ours. 

5.  Proprietors'  or  Stockholders'  accounts  are  treated  like  other 
personal  accounts.      They  are  credited  when,  by  investment  or  otherwise, 
the   business   becomes    indebted    to    the    persons,    and    debited   when,   by 
withdrawal   of  funds   or   otherwise,    the  persons  become  indebted  to   tho 
business. 

6.  All  accounts  showing  gains  or  losses  are  debited  when  that 
which  they  represent  costs  value,  and  credited  when  that  which  they  rep- 
resent produces  value. 

*  For  full  explanation  of  Notes  and  Acceptances  see  next  page. 


ACCOUNTS 


§83.  — NOTES  AND  ACCEPTANCES. 

Tb*  two  form*  of  negotiable  paper  owe  tbrlr  dliUlncllve  charactrriMlr*  t<>  the  <Hf- 
fwmt  ctmaManoM  of  their  origin.  A  note  originate*  with  the  ixiyer  or  maknr,  ADI!  I*  a 
tciar.unr  promti* ;  a  dntft  originate*  with  the  poy«<  or  drawer,  and  I*  flnt  a  reqoeot.  ami 
D«XI  an  arartuatlre  rotpooaa,  which  l»,  la  oftVct,  a  promt**  A  note  ha*  neco**arlly  '"•• 
parttoa,  the  mofer  and  the  pay**;  a  draft  ha*  three  partleo,  thr  drawer,  the  jtayte.  and  the 
•f/vmv.  The  maker  of  a  note  correspond*  with  the  drawee  of  a  draft,  and  the  payee  of  a 
coto  with  the  payee  of  a  draft;  while  the  drawer  of  a  draft  haa  no  equivalent  In  an  un- 
aattonrrt  note— he  bring,  In  fact  and  In  law,  an  endorser  or  guarantor.  Tli<  two  forme 
betow  will  lUui-trate  the**  polnU : 


~~|         -  New  7ork,d%<-&  4,  1883. 

<Qfa&t+f.  t&etyd. after  date  Cx  promise  to  //ay  to 

the  order  of  C/<e.€e,i     ^gee/iei. _ 

d/&nU4i+t<:/- DOLLARS,  value  received. 

U  f?^fl  Jffi    j£       / 

\j\  ^       ^      </''••'   '  •   • 


$1000.  Chicago,  tfu-fy  <f,  1883. 

<&t&£y,  {levy* -after  date,  vay  to 

\e  order  of    C/^te-t     ^av/Le-i 

'. DOLLAl!*,   > •"/"-  renewed. 

f^  Hy •      *-X^#      ^-^          *m-  9-f  9  m^ff. 


Of  the  not*.  8.  8.  Packard  1«  the  maker,  and  Peter  Cooper  the  payM  ;  of  the  draft, 
n.  B.  Bryant  U  the  drawtr.  Peter  Cooper  the  payee,  and  8.  8.  Packard  the  drawee.  The 
•ndcrUking  In  each  ea»e  to  that  8.  8.  Packard  chill  pay  to  Peter  Cooper,  or  to  any  DM  » li«m 
he  nay  authorize  to  receive  It.  one  Uunuand  doUart  In  sixty  days.  When  Packard,  the 
drawee  of  the  draft,  ban  responded  by  writing  hU  acceptance  acro»0  ite  fa<  «•,  tli<  drnft  will 
tbla  advantage  orer  the  note,  that  two  peraonn,  Inctead  of  one,  will  !•«•  IM-I.I  in  tin; 
the  tow  makes  the  drawer  a  guarantor.  Hence,  to  make  thr-  note  an  exact 
lapl  iqil  !•!»•>  nf  111  n  aoaeptrd  draft.  It  it  only  ncceMary  that  Bryant  tbonld  endorte  It.  or 
write  hi*  name  acro»*  the  back.  Toe  three  partle*  will  thrn  hold  exactly  the  name  relation* 
to  each  otter  la  both  documenU,  and  the  two  bill*  will  bo  in  all  rcupcctr,  except  form. 


QUESTIONS.  31 

Q,  IT  E  S  T  I  O  1ST  S . 

§  1.  What  is  Book-keeping  ? §  2.  Through  what  form  are  the  dealings 

of  a  business  best  expressed  ? §  3.  What  is  an  Account  ? §  4.  What 

results  are  shown  by  accounts  ? §  5.  What  does  Cash  account  show  ? — 

What  accounts  show  indebtedness  to  and  by  the  business  ? — What  name  is 
given  to  notes  and  acceptances  in  our  favor  ? — What,  to  notes  and  accept- 
ances against  us?  —  In  what  accounts  are  gains  and  losses  shown? 

§  7.  What  is  the  object  of  Cash  account  ? §  8.  What  is  its  method  ? 

§  14.  What  is  the  object  of  personal  accounts  ? §  15.  How  are  they  kept? 

§  20.  What  are  notes  and  acceptances  ? — How  does  a  note  differ  from  an 

acceptance? §21.  What  are  other  peoples'  notes  and  acceptances  which 

come  into  our  hands  called,  and  why  ? — What  are  our  notes  and  acceptances 
called,  and  why? — What  does  Bills  Receivable  account  show? — What  does 

Bills  Payable  account  show? §  22.  What  is  the  object  of  Bills  Receivable 

account  ? — How  is  it  kept  ? §  28.  What  is  the  object  of  Bills  Payable 

account  ? — How  is  it  kept  ? §  34.  What  is  the  purpose  of  business  ? — Ts 

this  purpose  always   attained  ? §  35.  What  must  be  the  quality  of  an 

account  which  measures  the  progress  of  the   business  ? — What  two  ideas 

oppose  each  other  in  accounts  of  this  kind  ? §  36.  What  names  are  given 

to  some  of  the  main  accounts  which  represent  the  activities  of  business  ? 

§38.  What  is  the  object   of  Merchandise  account? §39.  What  is  its 

method  ? — In  case  it  is  desired  to  show  the  gain  or  loss  on  merchandise  before 

it  is  all  disposed  of,  what  is  necessary? §44.  What  is  the  object  of  Real 

Estate  account  ? §  45.  What  is  the  method  of  keeping  it  ? §  50.  What 

is  meant  by  Shipment  or  Adventure  ? — What  will  a  Shipment  or  Adventure 
account  show? §51.  How  is  it  kept? §55.  What  is  shown  in  Com- 
mission and  Service  account  ? §  56.  On  which  side  of  the  account  are  the 

active  entries  usually  made  ? — What  is  the  theory  of  the  account  ? — Is  the 

result  of  Commission  and  Service  account   usually  a  loss  or  a  gain. 

§  60.  What  is  the  purpose  of  Interest  account  ? §  61.  What  is  its  theory? — 

When  does  Interest  cost  value?— When  does  it  produce  value  ? §65.  What. 

is  meant  by  Securities  ? — What  is  shown  in  Securities  account  ? §  66.  What 

is  its  method? §68.  Are  separate  accounts  ever  kept  with  the  different 

classes  of  securities  ?• §  70.  What  are  incidental  accounts  ? — What  is  the 

principal  incidental  account  ? §  71.  Mention  instances  where  it  would  seem 

to  be  necessary  to  keep  an  Expense  account. §  72.  Is  it  ever  possible  for 

Expense  account  to  show  a  gain  ?— In  case  it  should  show  a  gain,  what  is  true 
of  the  entries? — What  are  the  rules  for  debiting  and  crediting  Expense? — 
§  75.  What  relation  does  a  proprietor  sustain  to  his  business? — What  is  shown 
in  a  proprietary  account? §  76.  What  title  is  sometimes  given  to  the  pro- 
prietary account  when  there  is  a  single  proprietor? — What  names  are  used  in 

a  co-partnership  ? — What  in  a  joint  stock  business  ? §  77.  Is  it  ever  proper 

for  a  proprietor  to  have  two  accounts? — In  such  case,  what  is  shown  in  each  of 

the  accounts? §82.  How  many  classes  of  accounts  are  tlu>re? — What  if 

shown  in  each  class? — What  accounts  are  embraced  in  the  first  class? — What 
in  the  second  class  ? — What  name  is  given  to  accounts  of  the  first  class  ? — What 
to  those  of  the  second  class? — When  is  Cash  account  debited  ? — When  credited.? 
— When,  Bills  Receivable? — When,  Bills  Payable? — When,  personal  accounts? 
— When,  proprietors'  or  stockholders'  ? — When  are  accounts  showing  gains 
and  losses  debited,  and  when  credited  ? 


CHAPTER     II. 
TRANSACTIONS    AND    THEIR    RECORD. 

§84.  —  A  BUSINESS  TRANSACTION,  in  its  simplest  form,  is 
the  equal  exchange  of  valuable  things.* 

§85.  —  An  exchange  of  valuable  things  means  that  one  valu- 
able thing  is  received  and  another  valuable  thing  given. 

§86.  —  An  exchange,  or  transaction,  therefore,  affects  the 
business  in  two  directions ;  and  a  competent  record  of  a  transac- 
tion must  show  these  opposite  results. 

§  87.  —  In  the  illustrations  in  the  previous  chapter  one  side 
only  of  the  transaction  is  considered,  the  object  being  to  show  the 
character  and  aim  of  the  separate  accounts.  In  this  chapter  both 
sides  are  given,  and  it  will  be  seen  that  every  transaction  necessi- 
tates at  least  two  entries — one  to  the  debit  side  of  some  account 
and  one  to  the  credit  side  of  some  other  account ;  the  sum  of  the 
debits  and  sum  of  the  credits  being  equal. 

§88.  —  Frequently,  however,  the  record  may  involve  more 
than  two  accounts.  Preserving  the  equality  of  debits  and  credits, 
the  full  record  of  a  transaction  may  require  any  one  of  the  fol- 
lowing four  forms : 

1.  One  debit  and  one  credit. 

2.  One  debit  and  two  or  more  credits. 

3.  Two  or  more  debits  and  one  credit. 

4.  Two  or  more  debits  and  two  or  more  credits. 

ILLUSTRATIONS. 
§  89.  —  1.  One  debit  and  one  credit. 

TRANSACTION. 
Bought  merchandise  and  paid  cash,  $200. 

RECORD. 
Merchandise,  Dr.     ...    200    |    Cash,  Or. 200 

•  Thfe  tetnltloo  dom  not  coverall  the  exigencies  of  butaeu'  record,  nor  doec  It  aim 
to  be  jiMlmiplilisl.    It  to  •Imply  the  beet  definition  for  thU  place,  and  li  comprehensive 
i  for  the  work  in  I 


RECORD     OF    TRANSACTIONS.  33 

§  9O.  —  2.  One  debit  and  two  credits. 

TRANSACTION. 

Bought  merchandise  for  $500 ;   paid  cash,  $300,  and  note,  $200. 
RECORD. 


Merchandise,  Dr.       -    -    -    -    500 


Cash,  Cr.      - 300 


Bills  Payable,  Cr.      -    -    -    -    200 

§  91.  —  3.  Two  debits  and  one  credit. 

TRANSACTION. 

Sold  merchandise  for  $J/DO ;  received  cash,  $150,  and  note,  $250. 
RECORD. 

Cash,  Dr. 150    I    Merchandise,  Or. 4X) 

Bills  Receivable,  Dr.     •    -    -    250    I 

§  92.  —  4-  Two  debits  and  two  credits. 

TRANSACTION. 

Bought  merchandise  for  $350,  and  house  and  lot  for  $5000 ;  paid  cash, 
$3000,  mortgage,  $2350. 


RECORD. 


Merchandise,  Dr.     ....      350 
Real  Estate,  Dr.      -    -    -    -    5000 


Cash,  Cr. 3000 

Mortgages  Payable,  Cr.      -    -    2350 


§  93.  —  A  transaction  may  consist  of  an  exchange  between 
(1)  two  commodities  (things  haying  substance) ;  (2)  between  a 
commodity  and  a  claim  (or  promise)  ;  (3)  between  a  claim  and 
a  claim ;  (4)  between  a  commodity  and  a  service ;  (5)  between 
a  service  and  a  service. 

ILLUSTRATIONS. 
§  94.  —  1.  Between  Commodities. 

TRANSACTION. 
Bought  100  bush.  Wheat  for  $150  in  cash. 

RECORD. 
Wheat,  Dr. 150    |    Cash,  Cr.      ........    150 

§  95.  —  2.  Between  a  Commodity  and  a  Claim. 

TRANSACTION. 
Sold  James  Benson  on  credit,  50  bush.  Wheat  for  $85. 

RECORD. 
James  Benson,  Dr.     -    -    -    -    85    |    Merchandise,  Cr.     -         -    •         eo 


M  RMCORD   or 

; '.»<;.  (-en  a  Clnitn   mid  a   Claim. 

TRAN»A<  i 
Bccrlred  of  James  Benson  his  note  in  full  of  his  account,  /£5. 

Ki  «  t-i:i> 
Kite  Recdrable,  Dr.      ...    85    |    James  Benson,  Or.      -    ...    85 

§97. — 4*  Bdxveen  a  Cmninutlitij  and  a  Service. 

TRANSACTION. 
Becrired  cash  for  one  month's  labor,  $100. 

RECORD. 
Cksh,  Dr. 100    |    Service,  Or.       100 

§O8.  —  o.  Between  a  Service  and  a  Service. 

TRANSACTION. 

Pakl  Dr.  Hammond's  bill   for  medical  attendance,  $150,  by  one  year's 
tuition  for  his  son  Charles. 

RECORD. 

Family  Expense,  Dr.    -    -    -    150    |    Tuition,  Cr. 150 


EXERCISES    IN    JOURNALIZING-. 

§99.  —  To  "  journalize,"  in  the  book-keeping  sense,  is  to 
decide  in  the  case  of  a  transaction  what  shall  IK-  its  record  in  tin- 
Ledger;  in  other  words,  what  account  or  accounts  shall  In- <l«-l.iu-«l. 
and  what  account  or  accounts  shall  be  credited. 

glOO.  —  The  Journal,  when  used  as  a  separate  book,  comes 
between  the  Day-Book,  which  simply  records  the  transaction,  and 
the  Ledger,  which  contains  the  classified  results.  It  is  more  or 
Jess  formal  in  its  arrangement,  but  of  whatever  form,  its  ]Miij»»e 
i-  the  same — that  of  deciding  upon  the  dihifs  mnl  cr«/i/s 
of  a  transaction. 

1O1.—  The  "items"  under  the  different  subjects  in  the 
preceding  chapter  are  used  to  illustrate  separate  accounts.  For 
\\\\-  n-a-on.  iti  the  matter  illustrated,  as  also  in  the  first  series  of 
tht-  '•  M;it.-ri;il  for  Practice,"  but  one  side  of  the  transaction  is 
giren.  In  the  seron*/  and  third  series,  however,  the  transaction 
is  f oily  stated,  and  thus  is  given  an  abundance  of  good  material  for 
journalizing.  Three  forms  of  journalizing  an-  hen-  given,  anyone 
of  which  may  be  used.  Beginning  with  r  nd  Sc  -ri<  •-"  und*  T 

each  head,  let  the  student  journalize  all  the  items  in  Chapter  I. 


EXERCISES     IN    JOURNALIZING, 


35 


SECOND  SERIES,  UNDER  CASH  ACCOUNT.    (§11.) 

Proprietor,  Cr.      -    -    -  175 

Jones  &  Co.,  Cr.    -    -    -  75 

Cash,  Or. 29.12 

Mdse.,  Cr. 182.35 

7 

25 

Bills  Receivable,  Cr.     -  180 

Mdse.,  Cr. 125 

Cash,  Cr. 112.50 

Cash,  Cr. 50. 

Abram  Stuart,  Cr.    -    -  37.50 

Cash,  Or. 150 


THIRD  SERIES,  UNDER  BILLS  RECEIVABLE  ACCOUNT.    (§  27.) 


Item   1. 

Cash,  Dr.    -    - 

-    175            Pro 

Item   2. 

Cash,  Dr.    -    - 

75             Jon 

Item   3. 

Mdse.,  Dr. 

-      29.12        Cas' 

Item   4- 

Cash,  Dr.   -    - 

-     182.35        Mdi 

Item   5. 

Expense,  Dr.  - 

7             Cas! 

Item    6. 

Expense,  Dr.  - 

-      25             Cas 

Item    7. 

Cash,  Dr.   -    - 

-    180             Bill 

Item   8. 

Cash,  Dr.   -    - 

.    125             Mdf 

Item    9. 

Expense,  Dr.  - 

-    112.50        Cas: 

Item  10. 

Proprietor,  Dr. 

-      50             Casl 

Item  11. 

Cash,  Dr.  -    - 

-      37.50        Abr 

Item  12. 

Rent,  Dr.  -    - 

-    150             Cas] 

Items. 

Debits. 

Credits. 

1 

Bills  Receivable   -     - 

200 

Merchandise    -    -    - 

200 

2 

Bills  Receivable   -    - 

129 

James  Parton       -    - 

129 

3 

Cash        -    -    -    -     j 

199 

33 

Bills  Receivable  -    - 

200 

Interest       ...      (( 

67 

4 

Bills  Receivable    -    - 

400 

Cash       j 

Interest      -    -    -    -  ( 

394 
6 

5 

Bills  Receivable    -    - 

300 

Cash       j 

299 

Interest       -    -    -    -( 

1 

Bills  Receivable 

275 

Cash      -    -    -    -       ( 

274 

31 

*  t  U 

Interest       -    -    -    -( 

&  t  ^ 

OX 

69 

Bills  Receivable   -    - 

850 

Cash       -                   -j 

348 

95 

Interest       -    -    -    -"j 

1 

05 

fi 

Cash  ------ 

OAA 

"D'11      T>       ,'        1VI 

qnn 

D 

7 

J.  Rantoul  -    -    -    - 

OUU 

275 

13111$  ivccciva  Die  - 
Bills  Receivable  -    - 

OUU 

275 

8 

Bills  Receivable    -     - 

210 

E.  G.  Folsom  -    -    - 

210 

9 

Bills  Receivable    -    - 

400 

Cash       -                   -j 

398 

Interest       -    -    -    -  1 

2 

10 

Cash  

1QO 

fift 

],,,    ,  ,      •     1  1 

100 

1O£ 

ou 

xSiJls  .rCcceivaoie  -     -  ( 
Interest       -    -    -    -  | 

lav 

3 

50 

RECORD     OF    T/.'.t 


1'n  HID  SERIES,  UNDER  REAL  ESTATE  ACCOUNT.    (£ 

(Usual  Form.) 


DMU.                                   Credit*. 

Dr. 

Or. 

20000 
MQO 

MM 
150 
75 
12o 
150 
M 
:;: 
120 
750 

50 

75000 
150 
75 
125 
150 
IT, 
;JT 

120 
750 

W 

fl*vi»ntv  third  St  HOUM>  . 

Proprietor  

0 

r«R>i 

•> 

PaaVi 

f««>i 

•f 

P 

Cash    

Stock  Farm     .... 

Seventv-thirxl  St  House       ........ 

C-i-li 

r«*)i 

T>ntrlif4Mi  ('ft    farm 

r»«>i 

('M)I    • 

Seventy-  thin!  St.  House 

EXERCISES    IN    JOURNALIZING. 


37 


Debits.                                    Credits. 

Ttrm    1  f\ 

'   Dr. 

Cr. 

17 

50 

Cash.           - 

17 

Tfl 

-i  -j 

28 

Cash       -.--.- 

28 

J° 

Cash    -...-...              .         .. 

SfiQ 

Stock  Farm     ...    - 
1  1? 

259 

Cash    •    -•-...------ 

q-)7 

Dutchess  Co.  Farm  -    - 
1J. 

317 

ORAAA 

Seventy-third  St.  House 
1  f 

35000 

7« 

•Cash      .--... 

75 

ift 

fWi 

513 

75 

Dutchess  Co.  Farm  -    - 

1  ** 

513 

75 

J-  4 

432 

50 

Stock  Farm     -    -    -    - 
1  1 

432 

50 

22000 

Stock  Farm,  old  %* 
•tn 

22000 

20000 

Dutchess  Co.  F'm,  old  % 

20000 

*  Transactions  of  this  kind  do  not  occur  In  the  current  progress  of  the  business.  They 
are  Incident  to  the  closing  of  the  books  at  the  end  of  a  fiscal  period,  and  the  opening  of  them 
anew  at  the  beginning  of  another  fiscal  period.  It  Is  not  presumed  that  the  student  will 
fully  understand  the  entry  at  this  time. 


RECORD     OF    7  /,    i 


A    MODEL    SET    OF    BOOKS. 


i  IO'.'.  \  "Sri  "of  r.ooks  comprises  \\li;it  are  necessary  to 
reconl  the  hapjHMiiiigs  and  the  outcome  of  u  business.  These 
may  con>i-t  of  two  or  of  lifty,  according  to  tin-  extent  and 
character  of  the  business,  or  according  to  the  judgment  ami 
taste  of  those  who  use  tin  in. 

§  1O3.  —  Ordinarily,    three  books  comprise  a   set,  viz.:    the 

DAY-BOOK,    which    tells   what    happens;    the   .lot  I:\.M..    \\liieh 

decides   how   the  facte  shall   apjn-ar  on   the   Ix-d^er  ;    and    the 

LEDGER,   which  presents  the  facts  in  a  classified   1'onn.  —  The 

:'.x)k  and  Journal  are  usually  combined  in  one. 

i  in  I.  -The  '"Model  Set"  here  presented  ^i\e>  these  simple 
forms,  and  exhibits  in  the  plainest  way  the  characteristic  features 
and  logical  sequence  of  Double  Kntry  Hook-keeping.  Its.  points 
should  be  carefully  studied  for  future  reference. 


§  1O5.  —  MEMORANDUM  OF  TRANSACTIONS. 


New  1'orA,  .laiumru  1,  18  —  .    II.  B.  Bryant,  proprietor,  invested 
cash,  $3OOO.  .....  Bought  of  H.  Kly  for  rash,  12.")  brl*.  Flour,  at  $8,  $1000. 

.....  Paid  James  Sturgis  &  Co.  cash  for  two  months'  store  rent,  $75. 

.Inn.  lit.  Sold  Craig  &  Co.  for  cash,  50  brls.  Flour,  at  $10.  50,  $/;;  ?.-;.  ---- 
Bought  of  Q.  W.  Brown  on  account,  80  ds.,  500  bu»h.  \Vli.-ut.  at  $1.7.~>,  $875. 
.....  Sold  A.  E.  Mackey  for  cash,  100  bush.  Wheat,  at  $1.90,  J 

•Jan.   'JO.     Bought  of  8.  S.  Packard,  giving  in  payment  tlicn-for  our 
note  at  80  da.,  1000  bunh.  Oate,  at  90*,  $900.  ------  Sold  lul.  v  | 

cash,  500  bosh.  Oata,  at  $1,  $5OO.  .....  Paid  cash  for  service?. 

./"/-.  :;n.  Sold  J.  E.  Soult-  on  account.  200  bush.  Oats,  at  %\,$SOO; 
200  bojih.  Wheat,  at  $1.95.  $.190.  -  .  v.  <1  <>f  J.  E.  Soul<',  i 

of  account,  his  note  at  30  ds..  $590. 

I  ,  I.  >•  u,  i  ry  IS.  Bought  of  C.  II.  Taylor  for  caah,  225  brls.  Flour,  at 
$&W|,  $TJ50. 

I  '•  h.  XO.  Sold  J.  Jackson  on  his  note  at  80  ds,,  60  brls.  Flour,  at  $10, 
$500.  .....  Paid  ca»h  for  office  expenses,  $S~. 

I  '•  h.  US.     Sold  D.  H   Lilliliridge  on  account,  100  hrls.  Flrnir.  nt  > 

'.  .....  Gave  O.  W.  Brown  on  account,  our  sight  draft  on  I).  H.  Lilli- 

,   .,.-  - 

.    W.     Received  cash  in  full  !'•  .l.'-'s  not<v  .-  -  -  Tlicr*- 

remains  unsold  150  .r.  worth  $lo.-j.-,,  si:,,j7.~>i'  ,  :..  Wlu-ut. 

worth  $1.3  .nw  bush.  Oate,  worth  $1,  c- 


MODEL     SET     OF    BOOKS. 


39 


§1O6.  — DAY-BOOK.     (SEPARATE.) 
Neiv  York,  January  1,  18 — . 


Began  business  with  a  cash  investment  of 


Bought  of  H.  Ely  for  cash, 

125  brls.  Flour $8     -    -    -         1000 

Paid  cash  for  store  rent 75 

—1O  — 

Sold  Craig  &  Co.  for  cash, 

50  brls.  Flour $10.50    -    -  525 

Bought  of  G.  W.  Brown,  on  %, 

500  bush.  Wheat $1.75    -    -  875 

Sold  A.  E.  Mackey  for  cash, 

100  bush.  Wheat •       $1.90         -  190 

— 2O 

Bought  of  S.  S.  Packard,  giving  in  payment  therefor 

our  note  at  30  ds., 
1000  bush.  Oats       -    -    •  -       W  -    -  900 

it  __ 

Sold  Riley  &  Jones  for  cash, 

500  bush.  Oats    ...  $1    -  500 

Paid  cash  for  services 75 

30 

Sold  J.  E.  Soule,  on  %, 

200  bush.  Oats    ....  $1       $200 

200  bush.  Wheat 1.95    390  590 


3000 


•I1'  RECORD     OF    TK 

\nr     )../•/..    .Innnuni   ,'Ht,    IS . 


Btoaired  of  J.  E.  Soule  in  settlement  of  %,  his  note 

at  '{I)  lift. 

MA 

„  KVA     *A 

Bought  of  C.  H.  Taylor  for  cnah. 
O4K  hrla   Flour                                              ftft  Ml 

1T.ll 

*>/» 

Sold  J.  Jackson  on  bia  note  at  80  ds., 
50  brlfl.  Flour                        ...     $10    .    .    - 

ff 

500 

Paid  cash  for  office  expanses    -              ... 

07 

VI 

«*jr 

Sold  D.  R.  Lillibridjfc,  on  %, 
100  brls.  Flour    flO.25    -     - 

ff 

1025 

Gave  G.  W.  Brown  our  draft  on  D.  R.  Lillibridge  for  - 

AjB 

500 

R^cpiTfd  cash  for  J   E  Soulii's  note      ... 

"'Ml 

ff 

Inventory  of  untold  merchanditt. 

150  brls.  Flour    -     -                        -    $10.25    -     - 
200  bush.  Wheat     -    -     -              -         1.35    - 
800  bush.  Oats         ...                       1.00    . 

270 
MO 

50 

1O7.  —  JOURNAL.      (SEPARATE.) 
V  ir    1  *.//..  Jtiniini-i/    I ,    I  s 


Dr. 


fr 


r«uh    • 

:;  Hd 

:;<i  MI 

*/ 

1000 

Ca-' 

1000 

MODEL     SET    OF    BOOKS. 
New  York.  January  Jf,  18 — . 


41 


Dr. 


Or. 


Expense 75 

Cash 

1O 

Cash 525 

Flour 

Wheat 875 

G.  W.  Brown     -    -    - 
// 

Cash 190 

Wheat 

Oats 900 

Bills  Payable     -    -    - 

Cash 500 

Oats 

Expense 75 

— 30— 

J.  E.  Soule        580 

Oats 

Wheat 

Bills  Receivable    - 590 

J.  E.  Soule    ..-- 

Feb.  15 

Flour 1950 

Cash 

~2O— 

Bills  Receivable 500 

Flour  

// 

Expense 87 

D.  R.  Lillibridge 1025 

Flour   -...'-- 

G.  W.  Brown ....  590 

D.  R.  Lillibridge     -     - 

28 

590 

Bills  Receivable     -    - 


50 


75 
525 
875 
190 
900 
500 

75 


200 
390 


590 
1950 

500 

37 

1025 

500 

590 


50 


II 


KSCORD     OF    TRANSACTl 


§1O8.  — DAY-BOOK   AND   JOURNAL    COMBINED. 

1  New  !'«/•/..  .liinmiri/    t.    IS . 


Dr. 


Cash     

MOO 

I'roprit'tor             

/ 

:;IMHI 

loYvatment. 
ff 

Flour     

1000 

Cash     

, 
• 

HUM! 

Bo't  of  II.  Ely,  125  brio.   -    -    @  $8 

ff 

Expense   

i 

75 

Cash     

75 

P»id  store  n-nt. 
1ft 

Cash     

' 

RZ!\ 

Flour    

$ 

•M 

Sold  Craig  &  Co.,  50  brls.      -     -    $10.  .10 
ff 

Wheat  

6 

875 

G.  W.  Brown    .... 

Bouirlit  riftO  lnmli                                       ftl  7/5 

G 

675 

ff 

Cash      

a 

190 

Wheat  

i"ii 

Sold  A.  E.  Mackev,  100  booh.     -      $1.00 
A/i 

Oats      

7 

000 

Bills  Payable    .... 

Bought  of  8.  8.  Packard  on  our  note  at 
30  ds    1000  bush                                         MII 

8 

900 

ff 

(    i-h 

IUV) 

Oats 

Bold  Biley  &  Jones,  500  bu»h.  -      $1 

,,n.i 

MODEL     SET     OF    BOOKS.                                  43 

New  York,  January  2O,  18  —  .                      2 

Expense    

4 

2 

9 

7 
5 

10 
9 

3 

2 

10 

3 

4 

2 

11 
3 

6 
11 

2 
10 

75 
590 

590 
1950 
500 

37 
1025 
500 
590 

50 

75 

200 
390 

590 
1950 
500 

37 
1025 
500 
590 

50 

Cash     

Paid  for  services. 
*>ft 

J.  E.  Soule       

Oats,     200  bush.,  $1 
Wheat,  200  bush.,    1.95  - 
Sold  on  %. 
ff 

Bills  Receivable    

J.  E.  Soule"  

Note  at  80  ds.  in  settlement  of  %. 

TTVj/i        7  ff 

Flour    

Cash     ------- 

Bo't  of  C.  H.  Taylor,  225  brls.     •     $8.68| 
°/> 

Bills  Receivable    --------- 

Flour    

Sold  J.  Jackson  on  his  note  at  30  ds., 
50  brls    $10 

// 

Expense        -            .....--. 

Cash     .-...-- 

Office  expenses. 
ft  ff 

D  R  Lillibridge  

Flour    

Snlfl  him  10ft  hrls     -                          -      "ft  10  25 

ff 

G.  W  Brown     

D.  R.  Lillibridge      -    - 
Our  draft  on  Lillibridge,  favor  of  Brown. 

0  0 

Cash                              

Bills  Receivable    -    .    - 
J.  E.  Soule's  note. 

M 


RECORD     OF     TRA 


§1O9.  — LEDGER.*     . 

(1) 

H.  B.  Bryant,  Proprietor. 


CONDITION.) 


Dr. 


Cash. 


18- 

Jan. 

1 

1 

8000 

Or. 


1*-- 

18- 

Jan. 

1 

Proprietor      -    - 

1 

8000 

Jan. 

I 

Floor    •    • 

1000 

tt 

• 

Flour     .... 

1 

• 

•• 

" 

Expense    - 

75 

W 
U 

M 

Wheat  .... 

1 
1 

m 

MV) 

l'i   h 

80 

1R 

Expense    • 

76 

V  1. 

« 

Bill*  Receivable  • 

1 

aw 

SO 

Expense     * 

87 

.V) 

(8) 

Dr.                                    Flour.                                     Or. 

18- 

18- 

Jan. 

1 

Gash      .   .   .   . 

1 

1000 

Jan. 

M) 

Cash      .... 

1 

5S5 

Feb. 

15 

••        .    .    .    . 

a 

1950 

Feb. 

W 

Bills  Receivable. 

9 

600 

S6 

D.  R.  Ltllibridge 

a 

1086 

.010 

(4) 

Dr.                                  Expense.                                    Or. 

n- 

Jan. 

K.V 

1 
» 

Cash  (rent)    •   • 
»    (service)    - 
-    (office)  .    . 

1 

s 
s 

75 
75 
87 

|M 

50 

to 

*. 

Wheat.                                    Or. 

18- 

18- 

Jaa. 

]  < 

O.  W.  Brown     • 

I 

•i 

Jan. 

10 

Cash      .... 

i 

190 

80 

J.  K.  BonM     •    • 

i 

HI 

•  Put  three  account*  on  a  page. 


MODEL     SET    OF    BOOKS, 


45 


Dr. 


(6) 
Gr.  W.  Brown. 


Cr. 


18— 
Feb. 

25 

Dft.  on  D.  K.  L.  - 

2 

500 

18- 
Jan. 

10 

Wheat  -    -    -    - 

1 

875 

(7) 
Dr.                                          Oats.                                           Cr. 

18— 
Jan. 

20 

Bills  Payable      - 

1 

900 

18- 
Jan. 

20 
30 

Cash      -    -    -    - 
J.  E.  Soal6     -    - 

1 

2 

500 
200 

(8) 
Dr.                             Bills  Payable.                              Cr. 

18— 
Jan. 

20 

Oats  

1 

900 

(») 
Dr.                                J.  E.  Sortie.                                Cr. 

18- 
Jan. 

30 

Sundries    -    -    - 

.3 

690 

18— 
Jan. 

30 

Bills  Receivable  - 

• 

590 

(10) 
Dr.                        Bills  Receivable.                        Cr. 

18- 
Jan. 
Feb. 

30 
20 

J  E.  Soule"     -    • 
J.  Jackson     •    • 

3 
8 

590 
500 

10*0 

18— 
Feb. 

28 

Cash      .... 

2 

690 

(11) 

Dr.                       r>.  R.  Lillibridge.                        Cr. 

18- 

Feb. 

25 

Flour     -    •    •    • 

2 

1025 

18- 
Feb. 

25 

Dft.  fav.  Q.  W.  B. 

9 

600 

H 


RECORD     Of     TK.-l   ^ 


ABSTRACT    OF    THE    LEDGER. 

.  —  The  following  abstract  —  nsually  called  the  Trial 
Balance  —  presents  in  a  convenient  ami  compact  form  tin-  con- 
ilitiou  of  all  the  accounts,  and  also  affords  a  proof  of  the  work  in 
tlu>  e«|iiilihrium  of  the  Ledger.  As  cadi  tran.-ai  tion  has  njual 
debits  and  «  H  follows  that  all  the  transaction,  taken 

together  should  have  eijual  debits  ami  credits,  and  one  object  i.f 
the  Trial  Halam-r  i-  to  a-ccrtain  if  the  ainounts  ha\--  1"  en  prop- 
erly entered  in  the  Lodger. 

Jilll. — The  Trial  Halance  test,  however,  is  not  a  perfect. 
one,  as  there  ure  numerous  conditions  under  which  the  accounts 
in  the  ledger  may  balance,  and  still  errors  c\i-t  :  1.  An  entire 
entry,  or  more  than  one,  may  be  omitted  :  -it  ornvdii 

entry  may  be  taken  to  the  right  side  of  a  wrong  account  : 
3.  One  error  may  exactly  offset  another,  etc..  etc. 

§112.  —  Ordinarily,  however,  when  proper  care  with  proper 
safeguards  has  been  taken,  the  e<|iial  footing  of  the  .-ides  of  the 
Trial  Balance  is  taken  as  evidence  of  the  correctness  of  the 
Ledger. 

ABSTRACT,  OR  TRIAL  BALANCE. 


ACCOCVT*. 

FACE  or  L  EDO  KB. 

BALAXCZH. 

Dr. 

Cr. 

Dr. 

Or. 

BOOO 

flCOO 

r**h 

aflM 

31^7 

RO 

IM9 

2950 

MM 

1  i  ii 

187 

50 

187 

Wheat       

B7t 

580 

9K 

O.  W.  Brown 

500 

0*U     

l  

200 

BUls  Payable     - 

900 

900 

J  E.  Boate    

MQ 

Vt  ' 

Bill*  Receivable     .... 

IOM 

590 

500 

D.  R.  Lillibridge     - 

MM 

:,(,«, 

Equilibrium  •     • 

ISM 

CO 

50 

wn 

MODEL     SET     OF    BOOKS. 


4? 


§113.  —  Most  of  the  important  facts  of  the  business  can  be 
gathered  from  the  foregoing  abstract,  as  it  is.  The  inside  columns 
give  the  footings  of  the  accounts,  and  the  outside  columns,  the 
differences  or  balances.  Thus,  we  can  know  at  once  the  amount 
invested ;  the  balance  of  cash  on  hand ;  the  cost  of  the  different 
kinds  of  goods  we  deal  in  ;  the  returns  from  sales  ;  the  outlay  for 
expenses ;  what  we  owe  others,  and  what  others  owe  us,  etc.  In 
fact,  we  need  but  one  more  item  of  information  to  enable  us  to 
present  the  exact  state  of  the  business  at  this  point;  and  that 
item  is  the  value  of  the  unsold  merchandise. 

§  114.  —  This  value  has  been  given  in  the  memorandum  of 
transactions  under  date  of  Feb.  28,  but  has  not  been  utilized  in 
the  Ledger.  The  Analysis  which  follows — made  from  the  Trial 
Balance,  with  the  item  of  unsold  goods  added  —  will  give  a 
complete  showing  of  the  business,  both  in  its  progress  and  its 
financial  status. 


§  115.  —  ANALYTIC    STATEMENT.* 

/.  Analysis  showing  Resources  and  Liabilities,  taken  from  Ledger  accounts 
and  from  estimates  of  property. 


1.  From  Ledger  Accounts. 

Resources. 

Liabilities. 

1GC7 

000 
525 

1587 

270 
SCO 

50 

50 

375 
900 

SS15 

Paid  out      3137.50 

2)r      600 

We  owe  Mm  

ILLS       ATABLL                                   an     WW0    €em€ 

Disposed  of     .-..--     590 

Qr       600 

He  owes  us     
t.  From  Estimates  of  Property. 

Difference,  or  net  worth   -    -    • 

4800 

4800 

*  For  practical  form,  see  Appendix,  p.  131. 


u 


"K n    o  A-    T /,-  i  \  s  i 


2.  Analysis  showing  Gams  and  Losses,  at   exhibited  in    the    Ledger,    and 
•n  the  estimates  of  property. 


Is"*' 

«. 

<..,, 

1. 

btlflwu  of  untold      -    -    •   i.vr.no 
Total  return*     •  33K7.au 

\  ,  '      .  '•  • 

,  • 

BO 

It.  turn*  from  nalcx  -    •    BHO 
lUtlmiic  of  unxold  -    •    *70 

Total  returns      -    800 

Estimate  of  nn-old  -    -    -    -     800 

Total  return*      -  1000 

100 

&{ftrence,  or  ntt  gain     •    •    • 

•  • 

Pfrtrtf        . 

7*7 

-    - 

3.  Analysis  showing  that  the  investment  increased  by  the  net  gain  equals 
the  present  worth. 


-    -    Or.    - 


•    Amount  invented  (none  withdrawn) 
Add  net  gnin,  aa  above 


MB 


OtTea  present  Investment  or  net  worth     $8595 


SHOWING  FULL  RESULTS  IN  THE  LEDGER. 

?•'  11(>.  —  From  the  foregoing  Ledger  and  e  arc 

enabled  to  ascertain  the  exact  progress  and  state  <>f  tin    1>u~i 
Kn»m   the  Ledger,  as  it  stands,  we  get   the  amount  of  cash  on 
harnl.  what  is  owing  to  us,  and  what  we  owo  ;    and  ;  th-- 

goods  in  winch  wi-  di-al   i  •    u-.  and   how  much   tin- 

have  produced;  and  what  have  hecn  our  incidental  •  \\'.- 

lock  only  one  item  of  information  to  put  \\  .f  all 

.cts  we  need,  and  that  i-.  ////•  rulm-  <>f  tlir  nn*>. 

§  117.  —  Tins  item  of  information,  for  i 
availalil.-  from  any  record  which  could   h«-   I. 

nfiftj  of  goods  on  hnnd,  in  a  l)ii  iness   sncii  a 


MODEL     SET     OF    BOOKS. 


49 


sented,  might  not  be  readily  got  at,  but  because  the  fluctuation 
in  prices  makes  it  necessary  to  estimate  the  value  whenever  the 
facts  are  desired. 

§  118.  —  So,  it  may  be  understood  that  no  Ledger,  in  its 
current  condition,  will  show  all  the  facts  of  the  business,  and 
that  when  it  is  desirable  that  such  facts  should  be  shown  on  the 
Ledger,  the  business  —  or  the  current  record  of  it  —  has  to  be 
arrested,  and  the  Ledger  restored  to  the  same  condition  which 
it  held  at  the  beginning,  viz.  :  it  must  exhibit,  for  the  time, 
a  complete  statement  of  resources  and  liabilities,  and 
nothing  else. 

§119.  —  The  process  through  which  this  is  done  is  called 
"Closing  the  Ledger,"  and  the  effect  is  to  cancel  the  opposing 
facts  of  the  accounts,  bringing  the  single  results  forward  as  a 
basis  for  future  record. 

§  12O.  —  These  conclusions  will  appear  more  distinctly  in 
comparing  the  "  open  "  Ledger  as  already  shown  with  the  "  closed  " 
Ledger  now  presented. 


§121.  —  LEDGER.     (CLOSED.) 

(1) 
H.  B.  Bryant,  Proprietor. 


18— 

18- 

Feb 

28 

Balance  (new  %) 

3525 

Jan. 

1 

Cash      -    --- 

1 

3000 

Feb. 

28 

Loss  &  Gain  -    - 

L12 

525 

3525 

3525 

Mar. 

1 

Balance  (old  %)  - 

3525 

Cash. 


18- 

18- 

Jan. 

1 

Proprietor      -    - 

1 

8000 

Ja'n. 

1 

Flour     -    • 

1 

1000 

" 

10 

Flour     -    -    -    - 

1 

535 

V 

" 

Expense    - 

1 

75 

" 

Wheat  -    -    -    - 

3 

190 

" 

20 

Expense     - 

2 
2 

75 
1950 

Feb 

38 

Bills  Receivable  - 

3 

590 

M 

30 

Expense     - 

2 

n 

BO 

" 

38 

Balance  (new  %} 

/«;/ 

so 

.180.-, 

Mar. 

1 

Balance  (old  %)  • 

1607 

60 

10 


RXCOKD     OF    TRAX8A 


(8) 

Flour. 

18- 

] 

1H 

HH, 

i 

CM*                       i 

1000 

Jan. 

10 

Canh       .... 

1 

585 

Fek. 

M 

1 

1960 

10 

Hill-  Ilccolvablc  - 

f 

500 

SB 

B*~<o»d*) 

IS 

637 

» 

" 

«5 

D    i:    l.iliiliritlK« 
Balance  (nue  %) 

a 

10S5 

;    .: 

M 

»en 

VI 

Mar. 

1 

1887 

50 

(4) 

Expense. 

!•> 

18- 

Jan. 

1 

Guh(mt)    -    - 

1 

75 

Feb. 

88 

LoM&Oain  •    • 

Ll* 

W7 

H 

" 

» 

'•trvice)    • 

« 

IB 

b. 

M 

^..mn)  -    - 

8 

87 

60 

187 

Ml 

»t 

"""" 

\Vheat. 


18- 

18- 

J«n. 

11 

O.  W.  Brown 

1 

875 

J«n. 

Ki 

Canh      .... 

1 

190 

M 

80 

J.  B.  8onW     -    - 

8 

m 

Feb. 

» 

Ilalantt  (new  %) 

en 

" 

LouAO<An  •    • 

u 

875 

-r- 

Mar. 

l 

BBknc0(ald^)- 

S70 

(6) 
.  \V.  Brown. 


18- 

18- 

Dft  on  D.  R.  L.  - 

9 

500 

Jan. 

19 

Wheat  -    -    -    - 

1 

875 

SB 

Butou*  (new  %) 

m 

875 

si.', 

• 

Mar 

1 

Balance  (old 

(7) 


1»- 

> 

Jan 

90 

Bill*  Pajabto      - 

t 

900 

Jan. 

» 

Cob      ... 

\ 

500 

Feh 

SB 

LouAOaln  •    • 

L1J 

too 

•• 

80 

J  E.  Soule     • 

\ 

900 

Feb. 

» 

Balanet  (ntw  ",'c) 

aoo 

mt 

nor. 

"" 

1 

B*hao*(old^). 

aoo 

MODEL     SET     OF    BOOKS, 


51 


(8) 
Bills  Payable. 


18— 

20 

1 

900 

(9) 
J.  E.  Sould. 


18- 
Jan. 

30 

Sundries    •    -    • 

2 

590 



18— 
Jan. 

30 

Bills  Receivable  - 

3 

590 



' 

(10) 
Bills  ^Receivable. 


18- 

18— 

Jan. 

30 

J.  E.  Soule"     •    • 

2 

590 

Feb. 

28 

Cash      .... 

a 

590 

Feb. 

20 

J.  Jackson      •    - 

2 

500 

" 

" 

Balance  (new  %) 

500 

1090 

1090 

Mar. 

1 

Balance  (old  %)  - 

500 

(11) 

D.  R.  Lillibridge. 


18- 

18— 

Feb. 

25 

Flour     .... 

2 

1025 

Feb. 

25 

Dft.  fav.  G.  W.  B. 

2 

500 

" 

28 

Balance  (new  %) 

525 

1025 

1025 

Mar. 

1 

Balance  (old  %)  - 

525 

(12) 
Loss  &  Grain. 


18- 

18— 

Fcb. 

28 

Expense    ... 

lA 

187 

50 

Feb. 

28 

Flour     .... 

L3 

637 

50 

'• 

" 

Wheat  -    --- 

L5 

25 

" 

" 

Oats       .... 

L7 

100 

" 

" 

Proprietor     -    - 

Ll 

6SS 

7157 

50 

737 

r,o 

CORD    Of    T**f&ACTJ6 

CLOSING    THE    LEDGER 

§122.  —  To  "close"  an  account,  in  t. •clinical  sense,  is  to  put 
an  end  to  its  current  condition.  Thi>  i-  u.-ually  done  when  its 
purpose  is  fulfilled,  as  also  when  tin-  ndd  aiv  equal,  even  it'  the 
account  is  to  lie  continued. 

I  •_';;.       The  closing  of  an  account  does  not  change  its  rela- 
tiona  or  its  condition.      If  the  .-ides  an-  equal,  tin-  <>| 
cancel  each  other,  and  closing  it  simplv •  empha.M/.. .-  this  fact  and 
takes  the  account  out  of  the  present  reckoning. 

P.M.    -If   the   sides   are    une(|ual.  the   excess   of  the    I 
side  is   n«.t    extinguished    in    the   closing,  hut    is    perpetuated    by 
hein.ir  expressed  in  a  single  item,  and   -brought  down"  as  the 
reatiJt,  forming  the  fact  of  the  continued  or  "new"  account. 

§125.  —  Several  ohjects  may  he  served  in  closing  an  account. 
(1.)  When  the  purjHiseof  the  account  is  fullilled,  closing  it  n-n. 
it  from  present  consideration.     (-1.)   In  ca.-e  of  the  settlement  of  a 
personal  account,   whether   fully   liquidated   or  not,    the  cl» 
shows  the  agreement,  ami  renders  unncce-siry  the  going  "Ver  ot 
the  old  items  in  future  settlement-.      (:;.i    A-  in  the  < -a-e  of  Cash, 
the   main   ohject  of  the   account — the   halance   on   hand  — can   he 
shown  in  a  hinglc  umount. 

^  1'ilJ.  —  The  object  of  "closing  the  Ledger"  is  to  mark  an 
era  in  the  business,  and  to  show  the  results  of  a  given  period 
of  time. 

§127.  —  The  effect  of  closing  the  Ledger  i-  to  11  the 

accounts  to  their  primal  condition  of  cxhi'iiting  the  ;  and 

liabilities  of  the  l.u.-iness. 

§128.  —  The  use  of  red  ink  in  the  Ledger  is  a  matter  of  con- 
venience as  well  as  of  significance.  The  convenience  is  that  thus 
entries  may  be  made  originally  in  the  I  .  ithout  the  n 

sity  of  jtosting  them  from  other  )x>oks  ;    and   the  signilicatu 
that  they  serve  a  special  purpose — that   of  closing  an  account. 

law  of  -e.|iial  debits  and  credits"  is  as  clearly  ent'op 
entries  posted    fr-m    the-   Journal,   for   the   amount   that   app 
on  one  side  in  red   ink   \-  tran.-ferrrd  or  posted  to  the  other  r-ide 
in    black.      Nevertheless,  there  are  clear-headed   accountants  who 
in-i-t   ujHrn  making  all   entries  first   in   the  Journal,  where  full 
explanations  may  be  gi 


MODEL     SET     OF    BOOKS.  63 

§  129.  —  PROCESS  OF  CLOSING. 

1.  Before  attempting  to  show  all  the  results  upon  the  Ledger  there 
should  be  reasonable  certainty  that  the  Ledger  is  correct.     Hence,  the  first 
step  is  the  Trial  Balance. 

2.  To  further  guard  against  blunders,  the  next  step  should  be  the  ren- 
dering, in  a  more  or  less   formal  manner,   an   analytic  statement  of  the 
accounts.     See  example  under  §  115.* 

8.  As  this  statement  contains  all  the  facts  which  will  appear  in  the 
Closed  Ledger,  the  process  of  closing  —  with  the  statement  as  a  basis  — 
becomes  well  nigh  mechanical.  This  will  give  the  greater  opportunity  for 
precise  and  effective  work. 

4.  The  ruling — which  is  an  important  feature  of  the  Ledger — should  be 
done  with  absolute  precision  and  uniformity.     The  red  ink  should  be  of  good 
quality,  and  kept  pure.     A  separate  red  ink  pen  should  always  be  used. 

5.  As,  in  the  case  of  unsold  property,  the  current  Ledger  does  not  show 
the  true  state  of  the  business,  the  first  step  is  to  credit  the  value  of  the  unsold 
property  to  the  account  or  accounts  having  charge  of  it.    This  should  be  done 
in  red  ink,  the  amount  being  brought  down  on  the  debit  side  of  the  same 
account  in  black  ink.  f 

6.  In  case,  also,  of  liabilities  accumulated  during  the  business  and  not 
shown  in  the  proper  account,  the  amount  of  such  liabilities  should  be  entered 
to  the  debit  side  of  the  account  or  accounts  representing  them,  in  red  ink, 
and  brought  down  on  the  credit  side  of  the  same  account  in  black  ink.  % 

7.  As  the  separate  losses  and  gains  must  be  brought  together  in  a  single 
statement,  open  an  account  for  that  purpose  under  the  title  of  Loss  &  Gain.  § 

8.  Begin  with  the  first  account  after   the   Proprietors'.      If  it  be  a 
Financial  account,  enter  the  difference  upon  the  smaller  side  in  red  ink, 

*  The  Analytic  Statement  gives  excellent  practice  to  the  student  and  is  mainly  valuable 
for  thia  purpose.  In  business,  a  more  compact  and  comprehensive  form  of  statement  is 
preferable ;  such,  for  instance,  as  the  Balance  Sheet  on  p;igc  55. 

t  Inasmuch  as  the  inventory  cannot  be  well  "brought  down  "  in  the  new  account  until 
the  old  account  is  "closed,"  or  ruled  np,  and  this  event  must  await  the  declaration  of  the 
loss  or  gain  as  shown  by  the  account  after  the  inventory  is  credited,  it  will  seem  difficult  to 
follow  this  instruction  literally.  To  avoid  this  difficulty  in  part,  it  has  been  customary 
with  teachers  to  open  a  separate  account  with  balances,  to  which  are  transferred  all  the 
resources  and  liabilities — to  be  afterwards  retraiifferred  to  the  closed  or  new  accounts.  As 
this  Is  not  a  business  method,  it  is  deemed  best  not  to  adopt  it  in  this  book,  even  to  avoid  a 
seeming  difficulty.  If  the  teacher  should  think  it  advisable  to  insist  upon  making  the  entry 
complete  at  the  time,  it  can  easily  be  done  by  calculating  the  space  necessary  for  ruling  up 
the  account,  and  making  the  transfer  at  once  ;  or,  a  new  account  under  the  same  head  may 
be  opened  in  another  place,  and  the  entry  made  the  fame  as  in  a  Balance  account.  Practi- 
cally there  is  no  difficulty  in  the  matter,  for,  after  the  facts  are  well  in  the  student's  mind,  it 
will  not  be  necessary  to  follow  this  exact  order  ;  and  accounts  containing  inventory  entries 
can  be  entirely  disposed  of  before  proceeding  to  the  other  accounts. 

$  The  author  of  this  book  was  the  first  to  recognize,  in  the  closing  of  a  Ledger,  liabilities 
not  appearing  in  the  current  account.  It  is  not  always  done  in  business,  but  as  the  fact 
exists,  it  should  be  clearly  presented  to  the  student,  and  should  not  bo  ignored  anywhere. 

{  See  account  12,  page  51. 


54  RECOKD     OF    TRANSACTIONS 

ruto  op  the  account,  and  bring  the  balance  item  down  on  the  opposite  or 
larger  side  in  bbtfJk  inJt,  If  it  be  a  Basinets  account,  enter  the  dinVremv  upon 
the  smaller  aid*  in  red  inJl  and  transfer  it  in  blatk  ink  t<>  t  he  oppoeite  *\<\>  <>l 
Loss  4  Gain  account. 

9.  When  all  the  accounts, except  Lorn  &  Gain  and  Proprietor*',  ure  • 

a  second  trial  balance,  including  these  account!)  and  tin*  balances  brought 
down,  may  be  taken  to  teat  the  correctness  of  the  transfer*;  after  which, 
ascertain  the  net  gain  or  net  loss  as  shown  in  tin-  !.•>.-*  \  (iuin  account ;  and 
if  the  business  be  that  of  a  sole  proprietor,  ami  the  gains  are  to  increase  or 
the  losses  decrease  the  capital,*  close  the  Loos  &  Gain  account  in  the  usual 
way  into  Proprietors'  account  If  the  business  be  that  of  a  copartnership,  and 
the  investment  is  to  be  increased  or  decreased  by  the  (rain  or  JOSH,  close  Loss 
ft  Gain  into  the  Partners'  accounts,  giving  to  each  tin-  proportion  of  gain  or 
loss  to  which  by  the  terms  of  the  copartnership  lie  is  entitled. 

10.  Finally,  if  there  is  more  than  one  item  in  Proprietors'  account,  or  in  the 
separate  Partners'  accounts. f  close  it,  or  them,  by  the  UMJU!  process,  hringing 
the  balance  down  as  a  statement   of   the  investment   for   the   continued 
bsjttMSJ, 

//.  The  Ledger  will  now  stand  as  at  the  Ix-n'm  niiii:.  the  accounts  showing, 
hi  aiugle  items,  the  resources  an>!  liabilities  of  the  business. 


A  COMPREHENSIVE  BALANCE  SHEET. 

g  13O. —  There  are  few  forms  of  statement  more  complete 
and  comprelunMNc  than  the  Balance  Sheet  e\hil>ited  on  the 
following  page.  All  the  facts  shown  in  the  Ledger  are  here 
distinctly  Mated,  mid  the  entire  order  of  closing  the  Ledger  and 
transferring  the  balances  is  presented  so  plainly  and  compactly 
t  hut  not  a  point  is  lost.  T  lit- teaching  <|tiality  of  this  form  is  so 
great  that  full  instructions  as  to  its  preparation  and  use  are  givi-n 
on  the  succeeding  page. 

§131.  —  Other  forms  of  stateim-nt.  and  tin-  rnlar^'iiU'iit  of 
this  form  l»v  adding  other  c-ilumns  l'«>r  co-proprietors  will  l>c  found 
in  the  Appendix. 

•  The  Instruction  n*aa!ljr  pircn  to  Incrltably  "clow  LOM  A  Gain  account  Into  Stock  or 
Partner*'"  to  crroomw,  from  toe  bet  that  oft.-n  n,.-  ii,u-un.  nt  i-  k<  pi  ut  n  uniform  amount, 
sod  Ute  gahi  or  low  I*  apportioned  to  the  proprietun<  in  their  private  rapacity . 

t  Ordinarily,  after  the  gain*  and  IOMCS  of  tb«  bu»ln<-  <le<  larcd,  there  will 

be  M more  than  on«  Item"  In  the  Proprietary  acconni  or  nrnmnic.  but  it  in  w.-ll  to  recognize 
tks  fed  tkat  the  tovsrtaKnt  may  remain  nncban^-d.  In  which  ca«e  tbeaeconnurepreacntin^ 
tt  •koald  rwala  anchaaged.  And  It  may  be  well  to  rngKCut  here  that  any  account  holilin-' 
but  a  stafle  Item,  which  to  to  appear  in  the  continued  buslneM,  *boukl  not  be  dlnturbed 
la  tks  f«Mfml "  Cfcwta*  of  t 


3    H 


00        ««        OS 


«     ?§ 
3    S 


S    S 


L.  FOL. 


w 
[> 

tr1 
t> 

!2! 

Q 


B 
M 
fel 
H 


55 


M  XfCORD     Of    TR.i  .  10.\S. 

813-.  — How  TO  PREPARE  AND  USE  THE  BALANCE 

SHEET. 

1.  The  paper  should  be  sufficiently  wide  to  admit — in  case  of  a  dingle 
pfoprie'XNr— of  four  double  and  one  -IHL-I-   money  columns,  as  also  sutlii  i.-nt 
apace  for  tin-  no-omit  tit  lea  and  Ledger  folios.    For  each  additional  i 
an  additional  double  money  column.* 

1.  Aside  from  the  explanatory  head  lines  and  rules,  there  should  be  faint 
line*  enough  for  all  the  Ledger  accounts,!  with  five  additional  in  case  of 
•ingle  proprietorship,  and  three  more  for  each  additional  proprietor 

3.  Great  care  should  l>e  taken  to  lay  out  the  xpace  so  as  exactly  to  fit  the 
requirements.     First,  lay  it  out  in  pencil.     At  tin-  extreme  right  begin  \\itli 
the  double  money  columns  for  final  balances;  next  come  the  double  i 

<•  'Imnns  for  each  of  th  •  proprietors;  next,  double  money  columns  for  IXJBS  & 
Gain  ;  next,  single  money  columns  for  unsold  pn>|NTty  ;  next,  double  money 
columns  for  Face  of  Ledger;  next,  space  for  Ledger  folio;  next,  space  tor 
name*  of  accounts. 

4,  Beginning  at  the  left  to  rule  up  with  ink,  let  the  columns  extending 
through  "  Unsold  Goods,"  come  down  one  line  IM  low  the  lu.-t  line  of  A< count*. 
In  case  of  a  single  proprietor,  let  the  rulings  of  the  double  columns  of  LOM 
It  Gain  extend  two  lines  below  the  previous  ruling,  and  in  case  of  partners, 
drop  an  additional  line  for  each  partner. 

6.  In  case  of  a  sole  proprietor,  let  the  rulings  of  the  double  columns 
of  Investment  extend  two  lines  below  the  previous  ruling;  and  in  <•;> 
partners,  let  the  rulings  of  each  partners'  double  columns  drop  two  additional 
lines,  the  rulings  of  double  columns  for  Balances  coming  even  with  those 
of  the  last  part 

6.  The  foot  rulings  can  be  made  (as  per  example)  at  this  stage,  or  after 
the  amounts  are  all  written  in.  The  closing  of  accounts  and  transferring  of 
balances  may  now  be  done  in  order,  following  out  the  explanation  given 
under  "  Process  of  Closing."  Let  the  closing  entries  be  made  in  red  ink,  and 
(he  final  transfers  in  black  ink. 

•  hen  the  transfers  are  all  made  the  columns  of  Balances  will  con- 
tain the  resources  and  liabilities  at  the  close  of  the  business,  while  nil  the 
facts  to  be  gathered  from  the  Ledger  are  shown  in  order  under  the  appro- 
priateheada, 

8.  As  the  force  of  this  form  of  Balance  Sheet  is  in  its  compactness  and 
comprehensiveness  combim-d.  the  greatest  care  should  be  exercised  in  its 
preparation.  If  not  neatly  and  artistically  done  its  best  effect  will  be  lost. 

•  See  Partaenhlp  Balance  8kMt  te  Appendix. 

t  la  caw  of  a  Jane*  number  of  penoaal  accounts  —  which  would  make  the  rheet 
VnrMdy,  If  not  impracticable— It  to  ran^^  that  two  general  account*  be  u-r-.l.  viz. : 
Account*  BueliaMi  and  Account*  Payable.  And  In  cat*  thin  plan  i-  adopted  and  more 
i  knowledge  of  tbe  aeparate  account*  to  dedrad,  a  aeparat*  «heet  or  list  of  penonal 


MODEL     SET     OF    BOOKS. 


57 


§133.  — VOUCHERS    ACCOMPANYING-    MODEL 

SET. 


I- 


H.  Ely  to  H.  B.  Bryant. 


H.  B.  Bryant 

Cash.  iOttflltt    Of     <§.    $Uj. 


New  York,  January  1,  18 — 


100  brls.  Flour    ----- 

Rec'd  Payment, 

H.  Ely. 


1000 


H.  B.  Bryant  to  Craig  &  Co. 


Craig  &  Co. 


New  York,  January  10,  18 — 


of     .     . 


50  Iris.  Flour $10.50 

Rec'd  Payment, 

H.  B.  Bryant. 


525 


G.  W  Brown  to  H.  B.  Bryant. 


H.  B.  Bryant 

so  d».  $ouafct  of  $.  30. 


New  York,  January  10,  18 — 


500  bush.  Wheat 


{.75  -    - 


875 


68 


RSCORD     OF    TRAXSACTIO 


New  York,  January   1<>,    /A 


H  B- Bryant  to  A.  S 
*4. 

r«*.  lotight  of  g.  g.  gniaut. 


100  6a«fc. 


Rcc'd  Payment, 

H.  B.  It  r  at  i  tit. 


190 


S.  S.  Packard  to  H.  B.  Bryant. 

H.  B.  Jiryant 

sot«,sod».        Bought  of  *. 


New  York,  Jan.  20,  18— 


-    -    -    -    90?  -    -    - 


.  S.  Bryant  to  Riley  <t  Jones. 


llllcy  $'  Jones 

Bought  of  g.  & 


New  York,  Jan.  20,  18— 


Rec'd  Pay i) i' 

H.  B.  Bryant. 


600 


H  B.  Bryant  to  J.  E.  SoiM. 

J.  E.  SmtU 

JTM..M*.        Sought  of  9. 

Acu;  3  °ork,  Jan.  30,  18— 

y..  truant. 

^00  fcu«7i.  Oa/«    -    --- 
^00  bush.  Wieat     -    -    - 

^i         ^00 

/..'/.  7       .1!)U 

MODEL     SET     OF    BOOKS. 


59 


O.  H.  Taylor  to  H.  B  Bryant. 

H.  B.  Bryant 

Cash.                              gOU0!tt    Of 

New  York,  February  15,  18  — 

<B.  1.  laylar. 

200  Iris.  Flour    -    - 
Rec'd 

tin  >VK 

Payment, 
C.  H.  Taylor. 

1950 

H.  B.  Bryant  to  J.  Jackson. 

J.  Jackson 

Note,  30ds.                iOMfltlt    Of 

New  York,  Feb.  20,  18— 

jj.  g.  grtjaut. 

50  Iris.  Flour       $10      -    - 

500 

H.  B.  Bryant  to  D.  R.  Lillibridge. 

New  Yorlc,  Feb.  25,  18— 
D.  R.  Lillibridge 

imtgfct  of  1.  i.  fkjpnt. 

100  brls.  Flour    -    - 

-    -    -    $10.25     - 

1025 

3.     RECEIPT. 

James  Sturgis  &  (So  to  H.  B.  Bryant,  for  store  rent. 

$75.                                       New  York,  Jan.  1,  18— 
Received  of  H.  B.  Bryant  Seventy-five  Dollars  in 
full  for  store  rent  for  January  and  February. 
James  Sturgis  8f  Co. 

60  RECOKD     OF    TRANSACTIONS. 

a. 


H  8  Sryanl  to  S 

$900.  JVen-  }\>rk..lun.gO,18— 

Tli  hi  ij  ildt/.t  from  //////•  /  i>r»ii>i.«-  to  /»ti/  In 
&  S.  Packard  or  order,  Mm-  Hnn<lr«l  l)<>ll<tr*,  mine 
received.  //.  /''.  ///•//'/ ///. 


J  JaoJMOn  to  H  B  Bryoni. 

$500.  Jfew  York,  r,  h.  20,  18— 

Tit  hi  [I  dtti/s   from   <l<it<-   I  firnmisc  In  fxiij  tn 
If.  ft.  Jinjant  or  order,  Five  llnmlml  Ddllars.  mine 

./.  Jack 


I  .      I  >  It    \  K-  T  . 


H  B  fl-yant  on  D  R  LMiorxtgo. 

$500.  New  York,  Feb.  25,  18— 

At  sight,  pay  to  the  order  of  G.  W. 

re  Hundred  Dollars,  value  received,  mnl  <-lnir>jr 
account  of  //.  />'. 

To  D.  R.  LiUilir'ulgr,  /. 


§  134.— MATERIAL  FOR  CONTINUATION  OF  MODEL  SET. 

TO  BE  WRITTEN  UP  BY  THE  STI'DEN'T. 


[The  writing  np  of  thme  Iran-action*  after  the  method*  of  f 

tfce  Madeot'*  proficiency,  and  fasten  the  instruction  iriven.     Let  the  Mo<l<-l  \.<-  follrixvcd  in 
«w«y  particular,  ncing  the  JoornaJ-Day-Book  form,  ami  IK,  -amc  Ledger 

tbrnlaglte  open  accoanu.  and  op*-nlnc  othc-rn  a«  they  are  needed.     Afttr  tin-  hn^lneat  Is 
ported,  make  oat  TrUI  Balance  and  s  •-•  thr  Lodger  In  doe  form,  bringing 

balance*  down  where  proper,  and  flrally.  )>r<  -  i.tiiu  t!n  r.-i:lt-  In  a  Conipr  'henolve  Balance 
Sheet.    When  thi*  la  completed,  write  np  all  the  vouc  her*.  M  Indicated.] 


/.      c..i,:i!iu«-il    II.    H.    Hrvr.nt'g  bofriness.  beginninjr   witJi    tlio 
resource*  and  liabilities  M  shown  in  Balance  Sheet  (pap-    IB 
of  R.C.  Spencer,  300  bush.  Omts,  at  9?',  $.l>I  ;  gave  him  in  payment  our 
t:ght  draft  on  D.  H.  Lillibridge. 


MODEL     SET     OF    BOOKS.  61 

Mar.  1O.  Paid  cash  for  insurance  on  goods  in  store  (estimate,  $2500), 
at  £  per  cent.,  $18.75*  -  •  •  -  Sold  0.  T.  Miller  for  cash,  150  bush.  Oats, 
at  $1.05,  $157.50. Paid  cash  for  two  months'  rent  of  store,  $75.^ 

-  Bought  of  J.  D.  Odell  on  account,  20  da,  200  brls.  Flour,  at  $8.75, 
$1750. 

Mar.  2O.  Sold  L.  L.  Williams  for  cash,  100  brls.  Flour,  at  $9.50, 
$950.  -  -  Eeceived  from  D.  R.  Lillibridge  in  full  of  account,  his  sight 
draft  on  J.  D.  Odell,  for  $234,  which  we  have  remitted  to  Odell  for  our 
credit. 

Mar.  25.  Paid  cash  for  services,  $25.\ Received  cash  in  full  for 

J.  Jackson's  note  of  Feb.  20,  $500.  -  Sold  Folsom  &  Carhart  on  their 

note  at  60  ds  ,  100  brls.  Flour,  at  $9.56,  $956. Bought  of  C.  E.  Cady  on 

account,  30  ds.,  200  brls.  Flour,  at  $8.50,  $1700. 

April  1.  Sold  C.  P.  Meads  for  cash,  150  brls.  Flour,  at  $8.75,  $1312.50. 

Paid  cash  for  office  expenses,  $12.50. Paid  cash  for  cooperage, 

$25. Settled  G.  W.  Brown's  account  of  $375,  by  cash  payment,  $125  ; 

note  for  balance  at  30  ds.,  with  interest  from  date,  ? 

Apr.  1O.  Paid  cash  for  our  note  to  S.  S.  Packard  of  Jan.  20,  $900 ; 

and  interest  on  same,  41  ds.,  $6.15.% Sold  Reckers  &  Bradford  for  cash, 

75  brls.  Flour,  at  $9.80,  $735  ;  100  bush.  Oats,  at  $1.06,  $106. 

Apr.  2O.  Paid  cash  for  services,  $45. Sold  B.  Baron  on  note  at 

30  ds.,  150  bush.  Oats,  at  93?-,  $139.50.  -  •  -  Sold  A.  H.  Hinman  for  cash, 
200  bush.  Oats,  at  90/-,  $180. 

Apr.  3O.  Received  cash  for  B.  Baron's  note  of  Apr.  20 ;  face  of  note, 

$139.50 ;  discount  off,  23  ds.,  $0.53.\ Paid  cash  for  our  note  to  G.  W. 

Brown  of  Apr.  1,  less  discount.  Face  of  note,  $250 ;  discount,  34  ds.,  $1.42. 

-  Sold  A.  A.  Luick  for  cash,  200  bush.  Wheat,  at  $1.50,  $300. 

Goods  remaining  unsold,  125  brls.  Flour,  worth  $10.25,  $1281.25. 


RESULTS.—  Gain,  $62.74.  Resources— Cash,  $4566.49;  Flour,  $1281.25; 
Bills  Receivable,  $956.  Liabilities— J.  D.  Odell,  $1516  ;  C.  E.  Cady,  $1700  ; 
Stock,  $3587.74.  

VOUCHERS.—  1  (Mar.  1).  Bill  of  Oats  from  R.  C.  Spencer;  2  (Mar.  1).  Sight 
draft  on  D.R.  Lillibridge  ;  3  (Mar.  10).  Bill  of  Oats  to  C.  T.  Miller ;  4  (Mar.  10). 
Receipt  for  rent ;  5  (Mar.  10).  Bill  of  Flour  from  J.  D.  Odell ;  6  (Mar.  20).  Bill 
of  Flour  to  L.  L.  Williams ;  7  (Mar.  20).  Sight  draft  from  D.  R.  Lillibridge, 
our  favor,  on  J.  D.  Odell ;  8  (Mar.  25).  Bill  of  Flour  to  Folsom  &  Carhart  ; 
9  (Mar.  25).  Bill  of  Flour  from  C.  E.  Cady;  10  (Apr.  1).  Bill  of  Flour  to  C.  P. 
Meads  ;  11  (Apr.  1).  Our  note  at  30  ds.  for  balance  of  G.  W.  Brown's  account ; 
12  (Apr.  10).  Bill  of  Flour  and  Oats  to  Reckers  &  Bradford  ;  13  (Apr.  20).  Bill 
of  Oats  to  B.  Baron ;  14  (Apr.  20).  B.  Baron's  note  at  30  ds.,  our  favor,  for  bill 
of  Oats;  15  (Apr.  20).  Bill  of  Oats  to  A.  H.  Hinman;  16  (Apr.  30).  Bill  of 
Wheat  to  A.  A.  Luick. 

*  Open  Insurance  account.  t  Open  Rent  account. 

J  Charge  Expense.  $  Open  Interest  account. 

I  Debit  Interest,  $0.53. 


Q  VKS 


QUESTIONS. 

$84.  What  is  a  business  transaction? §85.  What  is  meant  by  an 

exchange  of  valuable  thing*? §86.    In   \\«\\    many   direction*  doe*  a 

transaction  affect  the  business? g87.  Are  tln>  transact  ions  given  in  full 

in  I'hnpter  I.  T— What  is  tin-  principal  iiiiu  of  tin-  exercises  in  Chapter  I.?— 
In  the  prevent  chapter,  where  both  Bides  of  tin-  transaction  are  given,  what 

does  the  complete  entry  necessitate  ? g  88.  Does  a  full  record  ever  involve 

more  than  two  accounts  ?— Give  the  four  forms  of  entry. js '.»::.    How  many 

different  kinds  of  exchange,  may  a  transaction  inv..lv.-v     \\  'hat  arc  they? 

§90.  What  office  does  journalizing  perform? §100.  When  the  Journal  is 

used  as  a  separate  hook,  between  what  books  do.-  it  mm.-  v —  •  ioj.  <  >t  h  .\\ 

many  books  is  a  "Set"  composed? §  103.  What  is  tin-  ordinary  mimlx T 

of  books  in  a  set,  and  what  an-  they  railed? §110.  What  docs  a  Trial 

Balance  exhibit? — Should  the  dehits  and  credits  in  a  Ledger  be  equal,  and 

why? £  111.   Is  the  Trial  Balance  a  perfect  test  of  the  correctness  of  the 

Ledger? — Mention  the  circumstances  under  which  a  Ledger  may  balance  and 

yet  be  wrong. £  112.  Is  the  Trial  Balance  ordinarily  accepted  as  a  sufficient 

test  of  the  correctness  of  the  Ledger? g  113.  What  facts  appear  upon  tin- 
open  Ledger? — What  important  fact  as  to  the  condition  of  the  business  can- 
not be  shown  in  the  current  Ledger? £  110.  What  is  shown  in  the  Analytic 

Statement? §117.  Why  may  not  the  value  of  unsold  goods  be  gathen-d 

from  the  open  Ledger? §118.  What  is  necessary  in  order  to  show  the 

condition  of  the  business  in  the  Ledger? 119.  What  is  this  process  called? 

g  122.  What  is  the  effect  of  closing  an  account  ? — When  is  it  usual  to 
dose  an  account  ? §123.  Does  the  closing  of  an  account  change  its  rela- 
tions or  its  condition? — In  case  the  sides  are  equal,  what  is  accomplished  l>y 

closing  an  account? §  124.  In  case  the  sides  arc  unequal,  docs  the  closing 

of  an  account  extinguish  the  inequality? — How  is  the  fact  of  .the  account 

perpetuated? §  125.   What  objects  may  be  served  by  closing  an  account  •' 

— §126.  What  is  the  real  purpose  of  closing  the  Ledger? ?  1J7    What 

H  the  effect  of  closing  the  Ledger? 123.  What  purpose  does  the  red  ink 

entry  serve  in  closing  entries? — May  a  Ledger  be  closed  through  Journal 
entries  ?— Is  this  ever  done  ? 


CHAPTER     III. 
BUSINESS    SERIES. 

§  134.  — The  aim  of  this  chapter  is  to  give  practical  point  to 
the  instruction  which  has  preceded  it.  The  work  is  divided  into 
"  sets,"  with  a  view  to  present  in  each  set  some  leading  idea  or 
principle.  The  object  is  stated  at  the  beginning,  and  is  forcibly 
brought  out  in  the  record.  The  sets  are  intended  to  be  progres- 
sive, and  are  only  long  enough  to  fully  enforce  the  lessons. 

§  135.  —  As  in  all  the  work  of  this  book,  every  set  is  preceded 
by  a  memorandum  of  transactions,  which  simply  stands  in  the 
place  of  the  transactions,  and  is  not  intended  to  be  copied.  The 
memorandum,  in  most  instances,  with  the  ultimate  results,  is  all 
that  is  given — the  whole  of  the  work  of  record  being  left  to  the 
student. 

§136.  —  The  working  of  the  first  series  of  transactions 
through  the  form  of  the  "Skeleton  Ledger"  will  open  up  a 
pleasant  and  effective  way  of  getting  readily  at  the  main  facts. 
It  is  suggested  that  all  the  sets  in  this  chapter  be  first  wrought 
through  this  form.  The  "  Skeleton  Ledger "  is  almost  indis- 
pensable in  teaching  book-keeping,  and  no  live  teacher  will  seek 
to  do  without  it ;  but  the  student  should  not  be  permitted  to  use 
it  to  the  exclusion  of  the  regular  forms.  After  working  the 
series  through  in  this  practical  way,  they  should  be  rewritten 
after  the  forms  of  the  "  Model  Set." 

§  137.  —  This  series  will  be  found  to  contain  sufficient  variety 
of  transactions  to  fully  illustrate  the  principles  of  Book-keeping  ; 
but  there  is  no  pretense  that  all  the  characteristics  of  the  different 
kinds  of  business  are  given.  It  would  not  be  possible  within  this 
necessarily  limited  space  to  present  the  ordinary  details  of  any 
business.  This  the  student  will  get  in  the  advanced  work  which 
will  supplement  these  first  lessons.  It  is  to  be  hoped,  however, 
that  whatever  "practice"  may  be  required  to  fix  these  lessons  in 
mind,  the  lessons  themselves  will  be  so  well  mastered  that  practice 
will  simply  tend  to  strengthen  and  solidify  them ;  for  it  must  ever 
be  remembered  that  practice,  to  be  effective,  must  be  founded  on  a 
full  knowledge  of  underlying  principles. 


'  1  Bl'SI.\KSS    SERIES. 

Set  I. -ALAN    E,  COOPER.  SOLE   PROPRIETOR. 


».— Baying  and  veiling  produce  for  ca»h.   Dullness  begun  with  not  capital, 
MtiUlm.  IB  •  fata,  and  ending  with  increased  caplul. 

JV<MM»  of  acfountt  uied,  teitk  number  of  linet  required  for  each  account  — 
Proprietor  (10);  Cash  (14);  Flour  (6);  Expense  (6);  Loss  &  Gain  (8).* 


\<ir    1  or/..  .fnniKiiif    1.    1^       .  ~  tinent,  cash,  $5000. 

2.  Bought  of  Mcrrick  &  Son  for  cash,  500  brls.  Flour,  at  $8,  $4000. 

3.  Sold  for  cash  to  E.  O.  Folsotn,  200  brls.  Flour,  at  $9,  $ISOO. 

4.  Sold  for  cash  to  \V.  H.  Hark.  300  brls.  Flour,  at  $9.25,  $2775. 
J.  Paid  cash  for  rent  and  office  expenses,  $185. 


RMULTS.— Capital  at  beginning,  $5000.    Net  gain,  $430.    Capital  at  doting, 
$5450.  

Set  I.  — CONTINUED. 

[The  continuation  of  the  bn»lne»s  of  thl*  set  nndcr  the  same  headings  I*  an  Important 
•tep.  and  If  properly  emphasized  will  do  much  to  fix  in  th>  u-tical 

utility  of  bringing  down  balance*.    It  IB,  besides,  the  bu*inet<8  method.    The  iir-i  Item  in 
tiMcootinned  memorandum  merely  state*  the  condition  of  the  old  Ledger  after 
eutrie*  are  complete ;  and  hence  they  do  not  require  record  a*  they  would  were  the  account* 
to  be  opened  anew.] 

CtarveferUffer.  —  Buying  and  selling  for  cash  and  on  credit.  Adjuctlnj:  iho  item  of 
••sold  goods  In  closing  the  Ledger.  Beginning  with  a  net  cosh  capital,  i-iu-i  t  ing  a  net  gain, 
sad  ending  with  an  liureated  capital. 

Name*  of  additional  account*,  with  number  of  linet  r<q>tir<d  for 
Carter  (4) ;  Wheat  (7) ;  Oats  (8) ;  II.  C.  Spcntvr  (4;. 


Jfeir    !'•;•/. .  .faniniri/   I  O,  1ft — .     The  investment,  aa  shown  in 
the  Ledger  balances,  is  cash,  $5450* 

1 :'.   Nought  of  James  Carter  on  %,  1000  bush.  Wheat,  at  $1.12,  $11SO. 

IK.  Bought  of  James  Jewell  for  ca#h,  1500  bush.  Oatu,  tit  (JO  ',  if. too. 

.'O.   >     !  Ira  Mayhow  for  cash,  800  bush.  Oats,  at  1  ^00  bu>l». 

Wheat,  at  $1.25,  $S50— Total.  $400. 

.'.-,.  >..;,!  \N  .  N.  Yerex  for  cash,  200  bush.  Oats,  at  75?,  $150.  •  • 
H.  C.  Spencer  on  %,  500  bush.  Wheat,  at  $1.20,  S'l'tO. 

3O.  Paid  cash  for  current  expense*.  -  Sold  Frank  (ioodtnnn  f»r 

cash,  500  bosh.  Oats,  at  75?,  $375.  I!      <     n-mainiiig   unsold,  300   l-u-!i. 

Wheat,  at  $1.15,  $345;  500  bush.  Oats,  at  651,  $325. 


RESULTS — Capital,  beginning,  $5450.   Net  gain  $160.    Capital,  clotting,  if 

•  The  apace  allotted  to  the  account*  cover*  not  only  the  transaction*  of  the  net 
bot  gires  room  abo  for  the  closing  of  the  account-,  bringing  •!••••*  M  \\\<-  <»n- 

Unaing  the  baalnao  as  aoffe*1ed  In  the  continued  transactions.    This  baring  been  done  to 

s  an  entry  of  the  continued  Investment. 


SKELETON    LEDGER. 


65 


§138.  — SKELETON    LEDGER. 


Dr.              Proprietor.                Cr. 

Balance 

51t50 



Jan.    1 
L.  &G. 

5000 
450 



5450 

5450 

Balance 

5610 
5610 

Balance 
L.  &G. 

5450 
160 

5610 

Balance 

5610 

Dr.                      Cash.                      Cr. 

Jan.    1 
3 

4 

5000 
1800 
8775 

Jan.   2 
5 

Balance 

4000 
125 
5450 

9575 

9575 

Balance 
Jan.  20 
25 
30 

5450 
460 
150 
875 

Jan.  15 
30 
Balance 

900 
75 
5460 

6435 

6435 

Balance 

5463 

Dr.                     Flour.                     Cr. 

Jan.    2 
L.&  G. 

4000 
575 

Jan.  3 
4 

1800 
2775 

4575 

4575 

Dr.                 Expense.                 Cr. 

Jan.    5 

125 

L.  &  G. 

US 

— 

Jan.  30 

75 

L.&G. 

IB 

Dr.            Loss  <Sc  Grain.             Cr. 

Expense 
Prop'  tor 

125 

1.50 

575 



Flour   - 

575 



575 

Expense 
Prop'tor 

75 

1GO 

Wheat  - 
Oats     - 

75 
160 



235 

285 

Dr.           James  Carter.            Cr. 

Jan.  12 

1120 

Dr.                   "Wheat.                    Cr. 

Jan.  12 
L.  &  G. 

1120 

75 

Jan.  20 
25 
Balance 

850 
600 

345 

1195 

1195 

Balance 

345 

Dr.                     Oats.                      Cr. 

Jan.  15 
L.  &  G. 

900 
160 

Jan.  20 
25 
30 
Balance 

210 
150 
375 

325 

1060 

1060 

Balance 

825 

Dr.          H.  C.  Spenoer.          Cr. 

Jan.  25 

600 

N 

Set  II.  — J.  J.  ANDERSON.  SOLE  PROPRIETOR. 


•. -Buying  and  wiling  groceries  for  cash.    Beginning  with  net  capital ; 
pta»»lat  In*,  and  cioetog  with  decreased  caplul. 


Namet  of  atttovntt  traftf,  tritk  number  of  linet  required  ft*  earh— I'n.pri. n«r. 
(11) ;  Cub  (19) ;  Merchandise  (10) ;  Expense  (8) ;  Lot*  ft  Gain  (10). 


I  ~,  .     l\        .      lri\  .-'n..  n'     «:i~':     -•     ••<. 

/'..   lloutrht  .••  rrall  &  Co.  for  cash,  31  lihda.  Molasses,  4000ffals., 

a:  8<K.  $SSOO. 
17.  S..11  II    M   (iunlnor  for  cash,  11  hlidH.  Molasses,  1335  ffals.,  at  857, 

*//-• 
/  s.  S..M  II    \V.  Beecher  for  cash,  15  hhda.  Molasses,  1903  pals.,  at  75^, 


-:n.  S.,1,1  R.  Harper  for  rarii,  S  hhds.  Molasses.  070  galt<,  "».5<7. 

'»  /.   Paid  current  expenses  in  cash,  $150. 


RBSULTB. — Capital  at  beginning,  $GOOO.    Netlou,$S16.SO.    Capital  at  doting, 
$5783.60. 


Set  II.  — CONTINUED. 

CharocttritHft.— Continuing  the  grocery  bofloeM,  ondcr  the  raroe  arcoti! 
new  article*.    Baying  and  Helling  for  cash  and  on  credit.    Compromiainj,'  witJi  a  rmlimr. 
The  buibnai  ranlttog  la  a  low,  which  the  proprietor  makes  good  by  an  equal  i: 

Nainet  of  additional  account*,   with   number  of  It  T  earh  — 

Acker,  Merrall  A;  ('(•.  (4);  I)  T.  Aiu.^i4);   I'urk  &  Tilfnnfi  1- :  \V.  II 
Patrick  (4);  Bills  Payable  (4). 


/;/««,/./»///.    l'<  In-ii, ii-ii    I.    IS .     Bought  -.f 

on  80  d».  cn-dit,   10  hlnls.   Mu^-ovwlo  Sugnr,   l.V.iMt  Ibs.,  at  '. 
SO  cheats  V< 

IO.  Paid  cash  for  store  rent  in  advance,  $75.  -  •      •  -  Sold  I>  T   An 
10  da.  credit,  4  chests  Tea,  250  Ibs.,  :< 

l.~>.   V.    i_-tit   of  Park  &  Tilford  on  W> 
llolaanefl,  663  gals.,  at  47<\  $3O>  •  -  Sold  J.  M 

Tea,  180  Ibs.,  i> 

:'».  -        '•'•    ii    .    •    • ;.  M   1"  <!-  ewdil    1   l.l,-l   Molu—  -.  110gals.,at 

.'  chests  T. 

'  i.  \V.  Michael  for  cash.  10  mats  Ju  '"'  lU..  at  Of,  >' 

•  randle  for  rash.  4  mats  Java  Coffee,  200  Urn.,  at 
of  I'.  T.    '.).•..-   in  full  of  hi»  account,  £ 


BUSINESS    SERIES.    ,  67 

25.  Sold  J.  W.  Swank  for  cash,  50  Ibs.  Coffee,  at  12?,  $6 ;  1  hhd. 
Molasses,  125  gals.,  at  50?,  $62.50  —  *  Accepted  Park  &  Til- 

ford's  draft  at  20  ds.,  favor  of  A.  C.  Lobeck,  for  amount  of  our  debt,  •* 

28.  Paid  cash  for  services,  $75. W.  H.  Patrick  has  settled  with 

his  creditors  at,  50  cents  on  the  dollar  ;  and  in  accordance  with  that  arrange- 
ments pays  us  cash  for  one-half  his  indebtedness  of  $132.40.  Cash  received, 

$66.20 ;  loss  incurred,  $66.20. Sold  H.  A.  Spencer  for  cash,  5  hhds. 

Sugar,  7800  Ibs.,  at  8}?,  $643.50. Paid  Acker,  Merrall  &  Co.  cash  in 

full  of  their  %,  f  Have  remaining  unsold,  5  hhds.  Sugar, 

7700  Ibs.,  at  9?,  $693;  12  chests  Tea,  740  Ibs.,  at  50/,  $370;  4  hhds. 
Molasses,  540  gals.,  at  40?,  $216;  5  mats  Coffea,  250  Ibs.,  at  ?£?,  $18.75— 
Total,  $ 

Received  from  proprietor  cash,  to  make  good  the  loss  incurred  during  the- 
business,  $.  .*  

RESULTS  AT  CLOSING. —  Resources— Cash,  $4792.66 ;  Merchandise,  $1297.75. 
Liabilities— Bills  Payable,  $306.91;  Capital,  $5783.50. 


Set  III. -JAMES   SANFORD,    PROPRIETOR. 


Characteristics.— Buying  and  selling  Dry  Goods  for  cash  and  on  personal  account. 
Beginning  without  capital,  realizing  a  gain,  and  closing  with  net  resources  resulting  from 
gain,  which  forms  capital  for  continuing  the  business.  Part  of  the  merchandise  remaining 
unsold. 

Names  of  accounts  used,  with  number  of  lines  for  each — Proprietor  (7) ;  Mer- 
chandise (17)  ;  Cash  (16)  ;  H.  B.  Claflin  (6) ;  C.  A.  Walworth  (5) ; 
A.  T.  Stewart  (6)  ;  J.  C.  Bryant  (5)  ;  Expense  (6) ;  H.  P.  Perrin  (5) ; 
Loss  &  Gain  (9). 

Albany,  February  /,  18 — .  Bought  of  H.  B.  Claflin,  New  York,  on 
four  months'  credit,  5  cases,  8810  yds.  Wamsutta  Muslin,  at  31?, 
$£676.10, 

2.  Sold  James  Shepard  for  cash,  1  case,  1710  yds.  Wamsutta  Muslin,  at 

34? ,  $581.40. 

3.  Sold  C.  A.  Walworth  on  account,  2  cases,  3250  yds.  Wamsutta  Muslin, 

at  35",  $1137.50. 

4.  Bought  of  A.  T.  Stewart  &  Co.,  New  York,  on  3  months'  credit,  6  cases, 

855G  yds.  Amoskeag  Prints,  at  23^,  $1967.88. 

5.  Sold  J.  C.  Bryant  on  account,  2  cases,  2816  yds.  Amoskeag  Prints,  at 

25?,  9704. 

7.  Sold  L.  L.  Williams  for  cash,  2  cases,  3350  yds.  Wamsutta  Muslin,  at 
33^,  $11:.'..'.  .'•-,. 

*  This  nmount  can  be  supplied  by  the  student  after  ascertaining  the  loss.  Then  tho 
entry  should  be  made. 


68  .  nrsrxsss   SSRTSS. 

iV.  Paid  expense*  in  raali,  $:: 

!>.  S..1.1  II.  IV  I'.  -ma  ou  account,  2  cases,  2794  yds.  Amoskeag  Prints,  at 
4* 
.—  2946  yds.  Amoskeag  Prints,  at  23«*  . 


.—  Capitol  at  beginning,  noticing.     .\,  t  ././,//  ,v  :.  ".  /  •-.     f  ',,pit,d  at  clot- 
inff,  $:.Hi.l9.      ItMcWfM*  —  Cash.  »v  M,-rrhnn<li  -• 

I     \\uhvortb,   $1137.50;    J.   C     Hryant.   $704  ;    II     IV    I 

;-{.       LiaWHui  —  ll.   B.   Claflin,   $:J7C.W  ;    A.    T.    Sir  wart, 
$1967.88;  Capital,  *»J0.  W. 


Set  III.  —  CONTINUED. 

rtanMtoirfte*.—  Continuing  the  Dry  Good*  ba»lneM  under  the  ume  account-.    Llqnl- 
dattaf  penooal  account*  and  bUU,  payable  and  r.-,  ,-i\  ii>i,  ,  i«-f"i'-  due,  with  inicn-i  allow- 
oot the  baslncM.    Incarring  a  locf,  thcrrby  d.-crcaning  the  capital. 


»  of  additional  arrounti,  vith  number  of  HIK*  nq><irtd  for  mch—  Bills 
Payable  (5»  :  Bills  Receivable  (7)  ;  Inteiv.- 


1'iln'tnu-ii  1O,  IS .  Accepted  II.  B.  Claflin's  draft  at 

3  month-,  favor  of  (V  ('.  Curtiss.  for  $!.'"". Bought  of  A.  T.  Stewart 

&  Co.  on  30  ds.  time,  5  cases,  6800  yds.  Am  Fumy  l>,i,,t^.  at  ID'  .  > 

/  .'.  Sold  A.  L.  XVyman  for  cash,  20  pcs.,  710  yd-.  F;m.  y  Prints,  at  U\f, 

$81.c:,. Sold  J.  J.  Souder,  on  bis  note  at  80  ds.f  14!),'  yd-.  An.oskemg 

Prints,  at  25? ,  $S7S. 

I  ~>  :f  C.  A.  Walwotth  in  s-ctih-inrnt  of  his  ii<-<-ount,  liis  note,  i,ur 

favor,  at  80  ds..  ?  -  -  -  -  VDrew  10  ds.  draft  on  II.  IV  IVrrin,  favor  of 

A.  T.  Stewart  &  Co.,  for  amount  of  Perrin's  indebtedness,  and  rnnittrd  the 
same  to  A.  T.  Stewart  &  Co.  to  apply  on  our  urrount,  ts' 

.'o.  N;.  C:ir|..'i.i.T  f..r  rash,  :;ir,  \  •  nj/, 

$36.*?. Sold  T.  B.  Stow.-ll,  on  his  note  nt  :{(»  days,  .mr  .-ntir.   M.M-k  of 

pnod>«,  viz  :  1454  yds.  Amoskeag  Prints,  at  21<',  t305.34  ;  '• 

Prints,  at  10?,  $577.60  =  $88t.84. Paid  cash  for  run 

date,  $75. 

i'1i    II.   B.   Claflin.  pi  vim:   him    in    full                     T.   B. 
Stow.  

i  i'      .ml  in  lull  of  1  .    - 

Received  ca*h  in  full  of  U'uhvo:  ;ii      nut.-  nf  .> 

for  uoezpirod  time.  94.35.\  -  -       -  Received  cash   in  full  oi 

•  Thl»  aeeoaat  to  paid  before  it  i«  doe  by  eqaitlnn,  and  hence  w> 
tftanvnt  for  the  nocspir.il  tim<-,  which  in  attained  to  IM>  $18.M.    Dddt  flat! 
CWtftf  Bill*  Brcvirahle  988IM;  Ca»h,  $174.74;  Inten-M. 

t  DtbU  Oaah  and  Inteiwt ;  CrtM  BUI*  Beoeirable. 


BUSINESS     SERIES.  69 

note  of  $373 ;  less  discount  for  23  ds.,  $1.42* Paid  cash  for  our  ac- 
ceptance of  Feb.  10,  favor  of  C.  C.  Curtiss,  $1500 ;  less  discount  for  77  days, 

$19.25.\ Paid  cash  to  A.  T.   Stewart  &  Co.  in  full  account,   being 

allowed  discount  for  unexpired  time,  $  •  Balance  of  account,  $1955.44- 

Discount  allowed,  $23.03.  J 

RESULTS. — Capital  at  beginning,  $230.19.    Loss,  $37.84.     Capital  at  closing, 
$192.35. 


Set  IV.  — STUDENT,   PROPRIETOR.! 


Characteristics.  —  Dealing  in  Furniture.  Buying  and  selling  for  cash  and  on  credit. 
Beginning  with  net  capital;  incurring  a  loss  in  excess  of  capital,  and  closing  insolvent. 

Names  of  accounts  used,  with  number  of  lines  required  for  each\ — Student  (6) ; 
Cash  (17);  Bills  Receivable  (8);  Merchandise  (18):  Expense  (7); 
A.  W.  Smith  (8)  ;  Bills  Payable  (5)  ;  De  Graaf  &  Taylor  (G)  ;  Loss  & 
Gain  (11) ;  Student  (7) ;  J.  M.  Phillips  (7) ;  Interest  (8) ;  Str.  Queen 
of  the  West  (5).  

Buffalo,  March  1.  18 — .  Proprietor  invests  in  cash,  $1500; 
promissory  note  for  $.2000,  signed  by  Warren  P.  Spencer,  in  favor  of  A.  M. 
Clapp,  dated  March  1,  inst.,  to  run  three  months,  with  interest ;  stock  of 
Furniture,  valued  at  $15000;  total  investment,  $18500.  He  owes  on  note, 
favor  J.  Brown  &  Co.,  dated  Jan.  27,  last,  at  30  ds.,  and  due  this  day,  but 
allowed  to  run  on  interest,  $12000 ;  also  to  Degraaf  &  Taylor,  on  account, 
$3500— Total  liabilities,  $15500. 

2.  Sold  Millard  Fillmore,  on  his  note  at  3  months,  1  set  Enameled  Furni- 
ture, $75;   1  do.  Black  Walnut  (oiled)  $275  ;    1  Carved   Rosewood  Bureau, 
$100  =  $450. 

3.  Sold  James  Truman   for  cash,  1   Mahogany  Settee,  $45 ;  6    Parlor 
Chairs,  at  $6,  $36 ;   1  Rosewood  Tete-a-Tete,  $75 ;  1  Black  Walnut  Library 
Bookcase,  $80— Total,  $236. 

4.  Paid  workmen  cash,  $775. Sold  A.  W.  Smith  on  account,  1 

Black  Walnut  French  Bedstead,   $50 ;   1  Extension  Dining  Table,  $2,5  ;  1 
Enameled  Bedroom  suit,  $85  —  $160. 

5.  Sold  J.  II.  Goldsmith,  on  his  note  at  GO  ds.,  6  Gothic  chairs,  at  $7,  $42  ; 
1  Black  Walnut  Dressing  Bureau,  $55;  1  French  Mantel  Clock.  $75;  6  Rose- 
wood and  Brocatelle  Parlor  Chairs,  at  $10,  $60— Total,  $232. 

*  Debit  Cash  and  Interest ;  Credit  Bills  Receivable, 
t  Debit  Bills  Payable  ;  Credit  Cash  and  Interest. 
.    $  Debit  A.  T.  Stewart  &  Co. ;  Credit  Cash  and  Interest. 
$  Use  student's  name. 
I  Including  Sets  IV  and  V. 


70  Bl'SIXRSS     SEKIJSS. 

.  Received  <aah  of  A.  \V.  Smitli  «n  account.  j?  S. 

gmrtue  for  a»h,  12  lining  Chair*,  at  $3,  $88;   1  Black  Walnut  Child1*  Crib. 
$15 :  1  Ornamental  fcugAre,  $45  =  $96. 
;  .   Paid  cash  for  rent,  $1S5. 

remaining  untold,  $10000, 


.— Ntt  capital  at  commuting,  $3000.   N*lo*,$+lf6.   Dtjntnry  at 
ttmng,  $1196. 


V.  —  STUDENT  AND  J.  M.  PHILLIPS,  PROPRIETORS. 


Admitting  a  partner  and  continuing  the  Mine  bnxiuem.   Cooflltli 


uf  lntrrr»t  and  other  toorOM  of  profit  and  lo»*.  Intcrcxt  allowed  on  IK  t  rujiital  and  charged 
on  detdeaey.  Beginning  with  net  capital  (ftirni-h.-i  \>\  incoming  partner)  and  <  !••  ii  _•  with 
act  gain  more  than  tuffldeot  to  ofiiet  low  in  previous  net,  giving  to  each  partner  a  uut 


capital  at  closing. 


.iftri/  1,  IS  —  .  Student  and  J.  M.  Phillips  «-NUT  into 
copartnership,  equal  in  (rains  and  lomcs,  to  continm-  the  Furniture  busineas 
of  Student,  as  represented  in  previous  act.  J.  M.  Phillips  to  invest  $10000 
caah.  each  partner  to  be  allowed  interest  on  his  net  investment,  or  charp  •(! 
with  interest  on  his  net  deficiency.  Student's  resources  invested  (as  per  state- 
*):  ra*h.  j?  ;  Bills  Receivabl«>,  £  -  ;  Merchandise,  ^  -  ; 

\.  \V.  Smith's  indebtedness,  f    f  ""       Student'.-  liabilities  assumed  by  firm  : 
Bills  Payable,  fM"1  ;  Degraaf  &  Taylor,  ^-i-  — 
J.  M.  Phillips  invests  cash,  $10000. 

2.  Received  cash  for  W.  P.  Spencer's  note  of  March  l,and  interfst  th.Tcun 
to  date.     Face  of  note,  $.''»»>  ;  Interest  for  82  ds.  n; 

3.  Sold  Steamer  Quo  n  of  th«-  W.  st  on  account,  6  Rosewood  T 

at  $40,  $240;  80  do.  Arm  Chairs,  at  $10,  $800  :  •',  "  Sl,-,-py  Hollow  "  Chairs,  at 
$50,  $150;  1  Carved  Rosewood  Centre  TaNe,  ?: 

4.  Sold  Sherwood  &  Co.,  Chinur",  forrjisli.10  l'.n;i:n.  1.  <i  H.  <1  I, 

at  $75.  $750;  12  Parlor  do.,  at  $150,  $1800;  20  C:i  mil  Hlack  \VwIniit  Bur 

at  $45,  $900—  Total,  $3450.     Paid  Degraaf  &  Tuv  lor  <-:ish  in  full  of  account. 
I 

Jf.  SoldW.  M.  Carpj-nter.  St.  Louis,  for  cash,  6  Black  \V:ilnnt  B.H-K 
at  $60,  $800;  10  Rosewood  Parlor  Suits,  at  $800,  $3000;   10 
Room  Suite,  at  $75,  $750—  Total,  $$110. 

ft.  Bought  of  Degraaf  &  Taylor,  New  York,  on  account,  as 
Furniture,  amounting,  per  invoice,  to  ^;.-r.''.  .....  I  uruiice  on 

ouilding  and  contents,  $1?~,  :  Paid  uorkmen  cash,  $2I'J—  Total,  *  Wf 

•  8w  Set  IV. 


BUSINESS     SERIES.  71 

8.  Sold  Munroe  &  Co.,  Detroit,  for  cash,  4  Bed  Room  Suits,  at  $62.50, 
$250  ;  5  Rosewood  and  Brocatelle  Parlor  Suits,  at  $250,  $1250 — Total,  $1500. 

?>.  Sold  J.  A.  Wheeler  &  Co.,  Cleveland,  on  their  note  at  60  ds.,  12  Black 
Walnut  Parlor  Suits,  at  $175,  $2100 ;  12  Best  Curled  Hair  Mattresses,  at  $30, 
$360 ;  20  Kettle's  Patent  Spring  Beds,  at  $60,  $1200  ;  4  Carved  Rosewood 
Secretaries,  at  §125,  $500— Total,  $4100. 

-LO.  Received  cash  in  full  for  Millard  Fillmore's  note,  with  interest,  of 
March  2  ;  Face  of  note,  $450;  Interest  for  39  ds.  at  1% ,  $3.41— Total,  .*  ">"  ^  • 

11.  Received  cash  of  A.  W.  Smith,  to  balance  account,  f     ^~     . 

12.  Paid  cash  for  our  note  and  interest,  due  March  1 ;  Face  of  note, 

$12000  ;   Interest  for  43  ds.  at  1%,  $100.33— Total,  $12100.33. J.  M. 

Phillips's  credit  interest  on  net  investment,  $10000,  for  11  ds.,  at  1%,  is 
$21.39.  -  •     •  -  Student's  debit  interest  on  net  deficiency,  $1126,  for  11  ds.,  at 
1%,  is  $2.41. 

Merchandise  remaining  unsold,  $8750. 


RESULTS. — Student's  deficiency  at  commencing,  $1126.  J.  M.  Phillip's  capital 
at  commencing,  $10000.  Net  gain,  $4658.54.  Student's  one-half, 
$2329.27.  J.  M.  Phillip's  do.,  $2329.27.  Student's  net  capital  at 
dosing,  $1200.86.  J.  M.  Phillip's  do.,  $12350.66. 


Set  VI.  — JAMES  HAMLIN  AND  ROBERT  MCGREGOR,  PROPRIETORS. 


Characteristics.— Dealing  in  Groceries,  for  cash  and  on  credit.  Shipping,  to  be  sold  on 
shipper's  account.  Beginning  with  unequal  capital ;  realizing  a  gain,  which  is  divided 
according  to  average  capital. 

Accounts  used,  with  number  of  lines  for  each — James  Hamlin  (6) ;  Robert 
McGregor  (6) ;  Cash  (10) ;  Merchandise  (11) ;  Store  and  Fixtures  (5) ; 
Bills  Payable  (a);  Shipment  to  Columbus,  No.  1  (6);  Shipment  to 
Columbus,  No.  2  (6) ;  Carter  &  Hawley(5)  ;  Shipm't  to  Wheeling  (5)  ; 
Sanford  &  White  (6) ;  Expense  (6) ;  Interest  (5) ;  Bills  Receivable  (5) ; 
Loss  &  Gain  (8).  

Cincinnati,  January  1,  18 .  The  partners  in  this  business  are 

James  Hamlin  and  Robert  McGregor:  the  style  of  the  firm  is  J.  Hamlin  & 
Co.  Gains  and  Losses  to  be  divided  in  proportion  to  investment. 

James  Hamlin  invests,  Cash,  $5000;  Merchandise  as  follows:  10  hhds. 
Sugar,  15250  Ibs.,  at  12,*',  $1830;  20  hf.  chests  Oolong  Tea,  979  Ibs.,  at  $1.SO, 
$1272.70 ;  7  brls.  Currants,  1972  Ibs.,  at  17<*,  $335.24— Total,  $3437.94.  Total 
investment,  $8437. 04. 

Robert  McGregor  invests,  Cash,  $10000 ;  Store  and  Fixtures,  $8000— 
Total  Investment,  $18000. 


7  -'  BUSINESS    SERIES. 

I*.  Bought  of  Johnson  ft  Co..  on  our  noto  nt  10  tls.,  100  boxoa  Chet  ftp,  2980 
lb».,  at  17*$508.«0;  80  k«-gti  Oh...  Hun,-r.  1  ll>4  Ibs..  at  31.',  $463.  1  I      I 

3,  Shipped  Sanford  ft  White.  Columbus,  O.,  to  be  Bold  on  our  account  and 
riak.  7  hhds  Sugar,  11193  Ibs..  «•  -- 

4.  Sold  for  cash.   1   l.rl    Currants.  250  Ibs.,  at  28*.  $57.50  ;   80  boxes 

Ibn..  at  20*.  $177.80—  Total,  »      rT>  5  0 


£.  Shipped  San  f  on  I  \  White.  ('olumbus,  to  bo  sold  on  our  account  and 
riak,  0  brla  Currant*,  1722  lb»  ,  . 

7.  S  A:  Mawley  on  ncc.mnt,  5  hf.  chests  Oolong  Tea,  247  Ibs.,  at 

$1.50.  /-£££ 

in    \\    i-l.t  of  Simpwn  ft  Co.,  15  brla.  M^-  $19.75.  $298.25; 

25  brU.  Wertorn  B,-.-f  llaiu-,  at  $39,  $:  U  -     ' 

ment    our   draft   at    10    dm.    on   C'urt.-r  \    ll.iul'V    i.n  ra.-li    lor 

balance.^  l&L?* 

1  1.  Shipped  Brown  \  <  '••  ,  \Vln-i-lin.!:,  W.  Va  ,  t->  lie  sr.1.1  on  our  account 
and  risk,  10  brls  Mess  Pork,  valued  at  $20,  ^.MX);  ,'u  In!-.  \\<>t.m  1'..  .  f 
Hams,  at  $30.  $600—  Total,  f  *  ^ 

/.».   i;.  ......!  nf  Sanfonl  i  \Vhiti-.  an  Account  Sal«->  of  tin-  sugar  sent 

them  on  tin-  :'.<!  inst.       Tin-  n<-t  pnxxxxls,  which  have  o  our 

credit  as  due  on  the  12th,  amount  t<  Shipm't  to  Columbus,  No.  l.j 

/  s  .  Paid  cash  for  sundry  items  of  exponec,  $7o  ;  Paid  cash  to  James 
Hamlin,  on  private  aocoui  l»tal,  tf  ^-^^ 

'.'o.  Paid  cash  for  our  note  and  interest,  favor  of  Johnson  &  f'...,  dm-  on 
the  15th;  Fa<w  of  note,  $M'J.  74  ;  Interest,  $0.81  ;  Amount  paM.  > 

.    Received  Account  Sales  of  tin-  Currants  hhipj  \\'liit<-, 

Columbus,  on  tin-  ~>:\i  in.-*t.     (Shipm't  toColumlms,  No.  2.)    Our  nrt  proceeds, 
dm-  the  19th,  amount  to  £.775. 

•;i',.   liuught  of  J.  I).  Hinde  ft  Co.,  20  hf.  chests  Y 

Ibs.,  at  $1.50,  $m>l.     ii.iv.'  .  ;  our  M_r'ut  draft  on  Sanfurd  ii  \\ 

for  $100O  ;  Cash  for  balance,  $.  .  .  .  . 

•:;.  .  >ur  &  Co.,  on  their  note  at  30  ds.,  10  hf.  chest*  ^ 

Hyson  Tea.  508  Ibs.,  at  $1.75.  ft-  ___ 

:tO.  Paid  salaries  to  date  in  cash,  c- 

RESOURTEfl  HOT  SHOWS  o\    I.  !.!>'.  I  it   —  }/•'<,  —.}  1,1,-ls..  40.  I*  !!>«.  E 
at  12<-,  $486.96  ;    1.1  hf  ch.-sts  «•  ll,s.,  at  $1.  "  hf. 

chests  Young  1  .   II.-.  at   $1.50.  $71  '-ese, 

9001  Ibs  .  at  l?c.  $8.*> 

k,  at  $20.  $100  at  $80,  $l.Vl-T..tiii. 

Store  and  Futures,  $800U  :  ut  cost,  $800. 


Rmn.TB.-7Wa/  gain,  $333.98.     Jamet  Ilamlin't  dtare,  $  Jtcbert 

MeOregor't  thare,  $ 


BUSINESS    SERIES,  73 

Set  VII.— CHARLES   SEYMOUR,   PROPRIETOR. 


Characteristics.— This  and  the  succeeding  set  are  intended  to  illustrate  the  principles 
and  practice  of  a  simple  Commission,  in  connection  with  a  general  Merchandise  business; 
as  also,  to  some  extent,  the  giving  and  receiving  of  notes,  drawing  and  accepting  drafts,  with 
allowance  of  interest  and  discount ;  keeping  a  Bank  account  in  the  Ledger,  drawing  and 
receiving  checks,  etc.,  etc.  This  set  illustrates  the  business  of  a  single  proprietor,  closing 
with  a  net  loss,  and  arranging  to  admit  a  partner  for  a  continuance  of  the  business,  in  Set  8. 
Ample  material  will  be  afforded  for  the  rendering  of  Accounts  Sales,  Accounts  Current,  Bills 
of  Purchase,  etc.  The  notes,  drafts,  and  checks  embraced  in  the  business  should  be  care- 
fully written  out  by  the  student. 

Accounts  used,  with  number  of  lines  for  each  (if  kept  in  connection  with  the 
succeeding  set)  —  Charles  Seymour  (9);  Cash  (23);  Furniture  (6); 
Expense  (7)  ;  Rent  (9) ;  Insurance  (9) ;  First  National  Bank  (23)  ; 
Bills  Payable  (9) ;  Merchandise  (13) ;  Thompson  &  Hayes'  Sales, 
No.  1  (6) ;  J.  L.  Hunt  (6)  ;  Thompson  &  Hayes'  Sales,  No.  2  (6) ; 
Bills  Receivable  (8) ;  Charges  (11);  Commission  (11) ;  Thompson  & 
Hayes  (10) ;  Wheeler's  Sales,  No.  1  (6)  ;  Thompson  &  Hayes'  Sales, 
No.  3  (6) ;  E.  G.  Folsom  (5) ;  Wheeler's  Sales,  No.  2  (6) ;  Thompson  & 
Hayes'  Sales,  No.  4  (6);  Interest  (9);  Loss  &  Gain  (15);  Leonard 
Hall  (6)  ;  J.  R.  Wheeler  (G) ;  James  Doolittle  (5) ;  Good  Will  (5). 


New    Yorlc,    May   1,  IS .      The  proprietor,   Charles  Seymour, 

invests  in  cash,  $5000. Paid  cash  for  office  furniture,  $350 ;  and  for 

books  and  stationery,  $50 — Total,  $400. 

2.  Deposited  in  First  National  Bank,  $4000. 

3.  Bought  of  C.  Loutrel  &  Co.,  on  our  acceptance  at  10  ds.  their  favor, 
50  brls.  St.  Louis  Extra  Flour,  at  $13.50,  $675  ;  100  do.  State  Superfine  Flour, 
at  $8.25,  $825— Total,  $  I  ft  ft'  . 

4.  Paid   for  three   months'  rent,  in  advance,  per   check,  $375. 

Received  from  Thompson  &  Hayes,  Chicago,  to  be  sold  on  their  account  and 
risk,  100  brls.  Western  Extra  Flour ;  Paid  freight  and  drayage  on  same,  per 
check,  $213.50. 

5.  Sold  fqr  cash,  from  Thompson  &  Haves'  Sales,  No.  1,  50'brls.  Flour,  at 
$11.40,  $Q  if   .  -       -  -Sold  J.  L.  Hunt  on  account,  75  brls.  State  Superfine 
Flour,  at  $9.00,  tf-LZl.  • 

ft.  Took  out  open  policy  of  insurance  on  warehouse  and  contents  for 

$30000,  at  J0  ;  Paid  premium  per  check,  $225. Sold  for  cash,  25  brls. 

St.  Louis  Extra  Flour,  at  $14,  $350  ;  25  do.  State  Superfine  Flour,  at  $9,  $225 
—Total,  $r,7r>. .  Deposited  in  Bank,  $1000. 

S.  Received  from  Thompson  &  Hayes,  Chicago,  their  second  consignment, 
consisting  of  100  brls.  New  Mess  Pork ;  Paid  freight  and  drayage  on  same, 
per  check,  .y .'.;;.. ~».  Sold  D.  B.  Ivison,  on  his  note  at  30  ds.,  from  Thomp^m 
&  Hayes'  Sales  No.  1,  50  brls.  Flour,  at  $11.50,  $575. 

'J.  Rendered  Thompson  &  Haves'  Account  Sales  of  Flour,  represented 
in  "  Sales  No.  1."  Our  charges  on  same  are  as  follows:  Storage,  insurance, 


74  arsixKss   ss/tiias. 


cooperage.  etc.,  ff/.4f;'  Commission  %\%  on  sales,  $S8.6S  ;  Thompson  ,V 
Haye*'  net  proctseda.  ISS1.4&—  Total  debit  to  Sales  No.  1,  *0.f;. 

//>.   S.I  I  T.  H.  Hnmne  fn.ni  T.  &  !i  Tk.  nt  $?0  ; 

$tSOO;  Received  in  payment  sight  draft  on  \\  .  II    Crocker  &  Co   for  > 
Ca*h,  $700.  J  -  DejK«ited  in  Bank,  $«W. 

/  /.  Accepted  Thompson  ft  Hayes'  draft  on  us  at  10  ds.  night,  favor  of 
il  H  Bryant,  for  $:.• 

/?.  i;«.  rivt-il  from  .1.  H.  NVheeler,  Buffalo,  to  be  sold  on  his  account  and 
riak.  1000  bush.  White  Geueace  Wheat.  Paid  freight  and  drayage,  per  rhi-ck, 
$175. 

//;.  Sold  from  Wheeler's  Sales  No.  1,  for  cash,  500  bush.  Wheat,  ut  $!].25, 
$16S5. 

II.  II  .  .-••ivt-d  from  Thompson  £  Hayes,  Chicago,  tin  ir  third  consign- 
mt-nt,  consisting  of  500  bush.  Rye;  800  do.  Oats;  1'aid  In-i-ht  and  drayuge, 
per  check.  $1SO. 

!.->.  S.ld  from  T.  &  H.'s  Sales  No.  2,  to  E.  Q.  Folsom,  on  account,  25  brls. 
Pork,  at  $21,  $ 

Hi.  Closed  Thompson  &,  Hayes*  Sales  No.  2,  and  rendered  Account  Sales 
of  same.  Our  charges  for  storage,  cooperage,  etc.,  $19.78  ;  Commi-«ion.  2)  % 
on  sales,  $50.62  ;  Thompson  &  Hayes'  net  proceeds,  Snt/t.io—  Total  dcliii  to 
Sales  Na  2,  $1777.50. 

/;.  Received  from  J.  R.  Wheder,  BufTnlo,  his  second  consignment,  con 
stating  of  2000  bush.  Canadian  Club  Wheat  ;   Paid  freight  and  drayage,  per 
check,  $325. 

I  s.  S^ld  J.  L.  Hunt  on  account,  from  T.  &  II.'s  Pales  No.  8,  500  bush. 

at  $1.40,  $700.  .....  Bought  of  J.  &  A.  Manning,  on  our  note  at  80  da., 

400  bush.  Timothy  Seed,  at  $8,  f|  **** 

2O.  Received  from  Thompson  &  Hayes,  Chicago,  tin  ir  fourth  coi 
ment.  consisting  of  200  brls.  Western  Extra  Flour  ;  Paid  freight  and  dras 
p.  T  <  heck,  $4?5.  ....  Deposited  in  Bank,  $1000. 

:'  I.  Paid  our  acceptance  favor  of  C.  I-ioutr-  !  .v  Co    dm-  th.-  l«'.th,  JMT  check  ; 
Face  of  acceptance,  $1500  ;  Interest  on  same,  5  days,  $i.  ,••  ;  Amount  |ia'ul, 
$1501.46.  .....  Also,  discounted  our  note  favor  of  J.  &  A.   Minimus;,  for 

$1900,  due  June  20.    Discount  off,  80  ds.,  $7.    Not  amount  paid,  ]x-r  cluck, 
$1193. 

*  A  general  "Charges"  account  U  sufficient  to  rcpiwm  ilx-  irturna  from  all  charge* 
except  ear  cotnmUrton,  which  require*  a  Mpmrata  account  . 

t  Tbe  teacber  aboold  explain  the;  naiurf  <>r  ihi-  il.-i.ii.  and  tl. 

•eparate  "Sate*"  accoonu  aa  HOOD  aa  the  property  la  dkpoaed  of.    'I  i..  -  ile»" 

abOBld  be  made  oat  In  proper  form  by  the  ctadont.    8c«-  m.>u<  I,  j.  •-••  88. 

|  Tbe  ooly  dUtinction  between  a  atgbt  draft  and  a  check  In  tliat  tin-  former  i»  drawn 
oponan  individual,  and  the  latter  on  a  bank.  I  :  .y.-ii.!.-  ii|>»n  pi.-enini'  ; 

eooelderad  the  Mune  aa  canh.    Aa  tola  draft  will  be  dcixMited  in  our  bank  f 
abafl  reckon  U  a*  ca*h  at  once. 


BUSINESS    SERIES.  75 

/  V7">~ 

23.  Received  of  J.  L.  Hunt,  cash  in  full  of  account,  $  '  ^     . 

24.  Paid  our  acceptance  favor  of  H.  B.  Bryant,  due  this  day,  per  check, 
$500. Deposited  in  Bank,  $1875. 

3O.  The  proprietor  admits  as  a  partner  in  the  business,  Leonard  Hall, 
who  is  to  make  a  cash  investment  equal  to  the  present  net  worth,  the  business 
to  be  continued  under  the  firm  name  of  Seymour  &  Co. — each  partner  to  give 
his  time  to  the  business,  and  the  losses  and  gains  to  be  divided  equally. 


RESOURCES  NOT  SHOWN  ON  LEDGER.* — Merchandise,  25  brls.  St.  Louis 
Extra  Flour,  at  $13.50,  $337.50;  400  bush.  Timothy  Seed,  at  $2.75,  $1100— 
Total,  $1437.50.  Rent,  2  months'  paid  in  advance,  $250.  Insurance,  11 
months'  unexpired  policy,  $20Q.25.  Furniture,  valued  at  $350. 

Net  Loss,  $ 


Set  VIII. -CHARLES  SEYMOUR  AND   LEONARD  HALL,  PROPRIETORS. 


Characteristics.— This  is  a  continuation  of  the  business  of  Set  7,  under  a  new  pro- 
prietorship ;  the  business  to  be  conducted  precisely  as  in  the  previous  set.  The  new 
partner,  Leonard  Hall,  invests  cash  equal  to  the  net  investment  of  the  former  proprietor, 
which  is  shown  in  his  account  after  carrying  to  it  the  loss  of  the  previous  business.  The 
same  Ledger  accounts,  with  balances  brought  down,  are  used. 


New  Yorli,  June  1,  18 — .—Leonard  Hall  invests  cash,  $ 
-  Deposited  in  Bank,  $4000. 

3.  Sold  James  Butler,  on  his  acceptance  at  10  ds.,  from  Wheeler's  Sales, 

No.  1,  500  bush.  Wheat,  at  $3.40,  $1700. Closed  Wheeler's  Sales,  No. 

1,  and  rendered  him  an  account  of  the  same.     Our  charges  for  storage,  insur- 
ance,  etc.,   $22.91;    Commission,  $83.12.      J.    R.   Wheeler's  net  proceeds, 
$3043. 97— Total  debit  to  Sales  Account,  $3150. 

4.  Bought  of  Lathrop  &  Co.,  8  hhds.  Muscovado  Sugar,  13850  Ibs.,  at  10|/, 
$1454-^5.     Paid  them  our  sight  draft  on  E.  O.  Folsom,  for  amount  of  his 
account,  f  :  Check  for  balance,  f 

.5.  Paid,  per  check,  Thompson  &  Hayes'  draft  on  us  for  $1500.. 

7.  Sold  J.  Timmona,  on  his  note  at  30  ds.,  4  hhds.  Muscovado  Sugar, 
6930  Ibs.,  at  Uf,  $702. 30. 

8.  Sold  for  cash.  25  brls.  St.  Louis  Extra  Flour,  at  $15,  $375.  - 
Paid  cash  for  postage  and  revenue  stamps,  $10. 

*  Among  the  open  Ledger  accounts  are  Wheeler's  Sales,  No.  1,  Thompson  &  Hayes' 
Sale?,  No.  3,  Wheeler's  Sales,  No.  2,  and  Thompson  &  Hayes'  Sales,  No.  4  ;  the  former  two 
of  which  show  an  excess  of  the  credit  side,  and  the  latter  two  an  excess  of  the  debit  side. 
A*  the  business  for  which  these  accounts  were  opened  is  not  concluded,  they  are  treated  in 
this  statement  precisely  like  personal  accounts,  waiving  our  immature  claims  for  charges 
and  commission. 


76  jt  us i ysss   N  A  /.•  / K 8 . 

in.  Received  cash  in  full  f  T  1>.  H   !  H  ,.f  May  s  dm-  th 

j?  I  »«•  |  waited  cash.  &«*>. 

I.'.   Sold  forranh.  400  bu*h   Tinx.         -  t  $I.W,  $14OO. 

I  '•.  Sold  for  cash,  from  Thompson  \  Hayes1  Sale*,  No.  8.  800  bush  Ont*. 

at  65'.  $t»5. Closed  T.  &  H.'s  Sales,  No.  8,  ami  n-n.I.-r.-il  an  M,-< -..nut  «,f 

the  same;  our  charges  for  storage,  insurance,  etc.,  amount  to  $!,:.*:  ;  our 
.«  TI...U,;,..  ,n  \  Hay,  s'  ii.-t    Pn  ..-,  ,  ,K  v  .  .•>. ;-._  Tmal   drl.it 

to  Sales  Account,  f: 

HI.  1M.I  J.  R  Wheeler's  sight  draft  on  us,  favor  First  National  Bank. 
per  check,  $!5OO. 

I  s.  -     1  James  Doolittl  :nt.  from  Whc.-ler's  Sales,  No.  'J.  l.ldd 

bash.  Canadian  Club  Wheat,  at  $2.85,  $M?5 ;  also  fn>m  Tlioinpwui  A  I! 
Sales,  No.  4.  200  brls.  Flour,  at  $11.80,  $8S70— Toml 

/.'/.  CloM>d  Thompson  &  Haves'  Sales,  No.  4,  and  rendered  account  of  tlio 
same.  Our  charges  for  storage,  cooperage,  et<  our  ronmii.-.sion,  at 

.       1'liompSJBSJ   \    Hay,.-,'    iit-t    pr.xvr.ls,  ,>>;:<,.<.<•,.      Total    .It-lit    t.. 

Sales  Account,  SlStf. 

:'0.  Sold  for  cash,  from  Wheeler's  Sales,  No.  2,  500  bush.  Canadian  Clut. 
it.  at  $3.4),  $1100. 

:'  I.  t  I..M<!  \Vlieeler"8  Sales,  No.  2,  and  rendered  account  of  the  same. 
Our  charges  for  storage,  insurance,  etc.,  $23.17.  Commission,  2.1 '; ,  $118. It. 
i.  H.  Wheeler's  net  proceeds,  $±,'^.71.  Total  debit  to  Sales  Account,  $ . 

'.'  I.  Received  cash  in  full  for  James  Butler's  acceptance  of  the  3d  hist.; 
Face  of  acceptance,  $1700  ;  Interest  on  same,  8  days,  $2.64  ;  Amount  rec< 

deceived  cash,  less  discount,  for  J.  Timmons'  note-  ..f  tin-  Ttli 
due  July  10.     Face  of  not  .•  Discount,  $,'.  v. -.1, 

Deposited  in  Bank,  $4500. 

Received  of  Jas.  Doolittle,  check  in  full  of  his  n< 

Deposited  in  Bank,  $6000. 

Vs.   \V(.  have  this  day  arranpt-d  \\ith   I,athn>p  &  MfK.rc,   for 
them  of  our  entin-   business,   including   Furnitui.-  '..KM!   \Vill 

possession  to  be  given  July  1.     Kc'-fivnl  their  not.- at  3  months,  for  tin-  fol- 
lowing considerations  and  amount :  Four  years  and  t<  H  moi 
togcth.  r    with   om-   month's   prepaid   n-i,1  T.-II   m.nitli-.'   HIH- 

y  on  $80QQQ,  Store  a:  ..;./;  Furniture,  ts'..  U'ill, 

UOOfc^-Total,  $4487.60. 

Accepted  J.  R.  Wheeler's  draft  nt  10  ds.,  favor  of  T 
balance  of  his  account,  $  ....  4  hhds.  Muscovado 

Sugar,  6920  Ibn..  at  12<,  $830.40. I'  ys'  si^ht  dralt, 

per  check,  for  balance  of  ti  

:tO.  Deposited  in  Bank,  $?71?.sr>. 


BE8CLT.— Total  net  gain,  $4512.52 ;  Stymour't  share,  $  ;  ll>li  * 


CHAPTER    IV. 
TEST    EXERCISES    AND    FORMS. 


SYNTHESIS. 

Journalize  tlie  following  transactions  : 

1.  Bought  merchandise  for  $1295.73;  Paid  cash  $795.75,  and  accepted 
thirty  days'  draft  for  balance. 

2.  Sold  merchandise  to  S.  R.  Eaton  for  $700 ;  on  which  he  paid  $300 
cash,  leaving  balance  to  remain  on  account. 

[Record  the  above  by  two  methods ;  first  in  one  entry,  and  next  In  two  entries.] 

3.  Sold  F.  E.  Rogers  merchandise  for  $500,  for  which  he  agrees,  within 
ten  days,  to  give  his  note  with  a  good  endorser. 

4.  Received  the  note,  instanced  in  the  above  transaction. 

5.  Received  $500  cash  on  loan  for  six  months,  giving  in  exchange  our 
note  for  the  time  with  interest  added  at  the  rate  of  6  per  cent  per  annum. 

(i.  Had  our  note  for  $700  discounted  for  three  months,  receiving  the  pro- 
ceeds  in  cash :  the  abatement  being  the  interest  on  the  face  of  the  note  for 
three  months  and  three  days. 

7.  Stuart  &  Co.,  who  owe  us  $1975,  have  compromised  with  their  credi- 
tors at  75  cents  on  the  dollar,  and  pay  us  that  proportion  of  our  account 
in  cash. 

S.  Q.  A.  Gaskell  holds  our  note  for  $1000,  on  which  has  accumulated 
$75  interest ;  we  pay  the  interest  in  cash,  and  give  them  a  new  note  of  the 
same  amount. 

.*>.  W.  E.  Drake  holds  our  note  for  $500,  on  which  is  due  $87.50  interest ; 
we  pay  the  interest  and  one-half  the  note  in  cash. 

10.  We  hold  a  note  of  $700  against  Stewart  &  Hammond,  duo  to-day, 
with  interest  at  6  per  cent  per  annum  for  98  days ;  they  pay  the  interest  and 
$300  of  the  note  in  cash,  issuing  a  new  note  for  the  balance. 

11.  J.  D.  Odell  owes  us  $750,  which  has  been  due  three  months ;  he 
pays  us  cash  $100,  and  gives  his  note  for  balance,  including  three  months' 
interest  on  the  amount,  at  6  per  cent,  per  annum. 


II  TKST    KXERCISXS    AND    FORMS. 

19,  T.  B.  Stowell  f  II-  i"r  us  on  commistlon.  m.-r.  lian.h--  f»r  $1200, 
u*  cash.  Irtv  his  commission  at  2)  f*r  <•*/</ <>n  tin-  uiinnuit  »t  i 

(Record  the  above  In  (HO  separate  entrie* ;  abo  in  one  entry  complete,  keeping  a  Com- 
Abo  nake  UM  entry  in  the  two  faraa,  omitting  Commission  account.) 


/  •'.  C.  Barker,  againxt  whom  wo  hold  a  note  for  $300,  wit  li  nrrumiiliiti-d 
int»Tt««t  of  $17,  permit*  the  note  to  go  to  protest,  we  paying  the  protest  f< ,  s 
$1.75)  In  cash. 

(The  qnentlon  may  arise  as  to  whether  the  exponi-e  of  protest  rhonld  bo  a<ld<>d  to  tli<- 
note  or  charged  to  the  maker  separately.  It  may  bo  well  to  make  the  entry  in  different 
»BT»:  1.  By  Increanluf  Bill*  Receivable  In  the  amount  of  tin-  prolrKt ;  8.  By  <  haririnjj  the 
protect  fea  to  nenonal  aocount ;  8.  By  tranferring  the  entire  Indcbtedne**  to  pf 
accoont,  thu»  recognizing  a  dishonored  note  a*  vimply  a  collateral.  In  view  of  the  trans- 
action which  follow*,  UMM  three  forma  of  entry  will  afford  an  instructive  variety.] 

/ /.  We  have  compromised  with  ('.  Hurkcr  for  the  abmv  indf'.trdnrsii, 
receiving  in  full  payment  of  the  same  $100  caeh. 

IS.  Paid  cash  for  insurance  on  $10000  of  merchandise  in  store,  at  f  of 
1  percent. 

Hi.  The  merchandise,  insured  as  above,  has  been  consumed,  and  we 
receive  the  full  amount  of  insurance  in  cash. 

17.  F.  C.  Woodbury  is  charged  on  our  books  $750;  the  account  has 
been  standing  three  months.  \V.-  am-pt  in  jmyment  his  note  for  the  debt 
and  interest  added  for  the  time,  at  6  per  cent  per  annum. 

IS.  In  settlement  of  our  account  npninst  Isaac  Smith  at  a  previous  date, 
we  made  an  abatement  in  his  favor  of  $112.60.  He  now  pays  us  the  amount 
in  cash. 

r.f.  In  payment  of  Samuel  Parker's  account  against  us  of  $475,  we 
draw  upon  oar  debtors  Jones  and  Sn:il>-\ . 

•;o.  Our  profits  during  the  past  year,  as  shown  in  the  Loss  &  Gain 
account,  amount  to  $1507r>,  \\liich  is  to  be  divided  between  the  partners  as 
follows :  John  Robb,  J ;  Thomas  Sims,  {. 


ANALYSIS. 

Write  out  in  dvt  form  the  trantaetiont  which  would  produce  the  following 

Journal  entriet  : 
DeMU.  CrtdUt. 


Merchandise  -         $300  Ta»h 


Merchandise 750  Dills  Payable TV) 


TEST     EXERCISES     AND     FORMS.  79 


3 


Merchandise 175  A.  C.  Lobeck 175 


Merchandise 250  J.  N.  Kiinball 100 

Cash 150 


Cash 110  Merchandise 110 


Cash 300  Bills  Receivable    -    ...      300 


7 


Cash    - 425  Bills  Receivable    -    -    -     -     400 

Interest 25 


Cash 473  Bills  Payable 500 

Interest -    -       27 


Cash 512.50        Bills  Receivable    -    -    -    -     600 

Interest 87.50 


Cash 175  James  Magoon      ....     200 

Loss  &  Gain      -----       25 


11 


Cash -.-      143  Mott&Co. 600 

Interest    -------       57 

Bills  Receivable    -    -    -    -      400 


12 


Government  Bonds    -    -    -    5000  Cash 5317.50 

Interest -    -        17.50 

Premium 300 


13 


Bills  Payable 500  Merchandise 200 

Cash    -  297.50 

Interest 2.50 


14 


Merchandise 2000  Cash 1500 

Bank  Stock 2000  Bills  Payable 2500 


15 


Cash 1275  Howard's  Sales      -    -    -    -    1275 


TEST    XIERCISKS     A  X D     FORMS. 


.lain.'-   ]'.irt     :i 


Shipment  to  Buffalo  -     -     .    2150 


Shipment  to  Boston   -     -     •    1406 


17 


Merchandise     .... 

Cash IN 


18 


lu.u,  .-  Sal,  s 


18.75        Cash 


is.  7-, 


Bills  Receivable     -     -     -     -    1500 
Interest "> 


Cash 


1000 

m 


Cash 1?2.50        T.  Uorton 

Interest 12.50 


In-  BHMI 


GUI 


Howard's  Sales 


GUI 


Cash  -  -  - 
Bills  Payable 
Ii.tfr.-st  -  - 


•Hi  BM  irtbU 


Expenses 


hrift  ;  rofrii  b  •! 


75 


Casli 


75 


175 


Kent 


175 


-    1050 


Storage   -    - 
Commiroinn 
James  Howard 


15 


1005 


25            Commission 
2S 


25 


800 
400 
1750 


Hertz  &  Co. «50 


500  Bills  Payable 

-27- 

17.50       Cash   -    -    - 

28 


.-,00 


17.50 


UK  Cash 

M 


118 


LOM  A  Gain 029  Smith  (proprietor) 


929 


TEST    EXERCISES      AND     FORMS.  81 


Smith  (proprietor)      -     -     - 

375 
«? 

Loss  &  Gain           -     -     -     -      375 
1 

Commission  &  Services  -     - 

137.50 

Cash    -                                 -      137.50 
o 

Bills  Receivable     -     -     -     - 

300 
10 

John  Wood  310 
? 

Bills  Payable    - 

350 
13 

C  Mitchell                                   363 

VOUCHERS. 

For  complete  data  for  the  following  papers  refer  to  the  transactions  them- 
selves, as  indicated  in  the  headings. 

1,   PAPERS  TO  ACCOMPANY  SET  1,     (Page  84.) 

1.  Receipted  bill  from  Merrick  &  Son  to  Alan  E.  Cooper,  of  500  brls. 
Flour,  at  $8. 

2.  Receipted  bill   from  Alan  E.  Cooper  to  E.  G.  Folsom,  of  200  brls. 
Flour,  at  $9. 

3.  Receipted  bill   from  Alan  E.  Cooper  to  W.  H.  Clark,  of  300  brls. 
Flour,  at  $9.25. 


2.    PAPERS  TO  ACCOMPANY  SET  1.     Continued.     (Page  64.) 

J.  Bill  from  James  Carter  to  Alan  E.  Cooper,  of  1000  bush.  Wheat, 
at  $1.12.     Jan.  12. 

2.  Bill  from  James  Jewell  to  Alan  E.  Cooper,  of  1500  bush.  Oats,  at  60?. 
Jan.  15. 

3.  Receipted  bill  from  Alan  E.  Cooper  to  Ira  Mayhew,  of  30  bush.  Oats, 
at  70?  ;  200  bush.  Wheat,  at  $1.25.    Jan.  20. 

4.  Receipted  bill  from  Alan  E.  Cooper  to  W.  N.  Yerex,  of  200  bush, 
Oats,  at  75<<.    Jan.  25. 

5.  Bill  from  Alan  E.  Cooper  to  H.  C.  Spencer,  of  500  bush.  Wheat, 
at  $1.25.    Jan.  25. 

6.  Receipted  bill  from  Alan  E.  Cooper  to  Frank  Goodman,  of  500  bush. 
Oats,  at  75?.     Jan.  30. 


TEST  BXERCI8BS  AXD  FORMS. 


3.    PAPERS  TO  ACCOMPANY  SET  2.     (Page  68.) 

1.  Receipted  bill  from  Acker,  Mermll  &  Co.,  New  V..tk.  t..  .1    .1.  Aml.-r 
•on.  of  31  blub.  Molasses,  4000  gals.,  at  80? .    Jan.  16. 

'.'.  Receipted  bill  from  J.  J.  Brooklyn,  to  H.  M.  (Janlner,  of 

11  hh.ls  Molasses.  1885  gala ,  at  &V.    Jan    1 7. 

:t.  Receipted  bill  from  J.  J.  Anderson,  Brooklyn,  to  II.  W.  Beech,  r,  of 
11  hlute.  Molasses,  1995  gala.,  at  75'.    Jan.  18. 

/     Receipted  bill  for  J.  J.  Anderson,  Brooklyn,  to  R.  Harper,  of  5  hhds. 
Molasses.  670  gala,,  at  75?.    Jan.  20. 


4.   PAPERS  TO  ACCOMPANY  SET  2.     Continued.     (Page  66.) 

JT.  Bill  (30  ds.  credit)  from  Acker,  Merrall  &  C--  ik,  to  J.  J. 

Anderson,  of  10  hhds.  Muscovado  Sugar,  15.500  IDS.,  at  9J?  ;   L>< 
Hyson  Tea,  1250  Ibs.,  at  58?.     Feb.  1. 

:*.  Bill  from  J.  J.  Anderson  to  D.  T.  Amos(10  ds.  credit),  of  4  chests  Young 
Hys  .11  Tea,  250  Ibs,  at  57*.  Feb.  10. 

:t.  Bill  from  Park  &  Tilford,  New  York,  to  J.  J.  Anderson  (80  ds.  cr«i.t), 
of  5  hhds.  P<. no  Hico  Molasses,  658  gain.,  u  l>.  15. 

4.  Receipted  bill  from  J.  J.  Anderson,  Brooklyn,  to  J.  M.  Frazier,  of 
2  chests  Tea  (Young  Hyson),  180  Ibs.,  at  59*.  1  I >  1  ~> 

8.  Bill  (10  ds.  credit)  from  J.  J.  Anderson,  Brooklyn,  to  \\ .  H.  P:itri<  k, 
of  1  hhd.  Molasses.  110  gals.,  at  .W  ;  2  chests  Young  Hyson  Tea,  129  Ibs.. 
at  60f .  Feb.  20. 

*;.  Kt-ceipted  bill  from  G.  \V.  Michael,  New  Orleans,  to  J.  J.  Anderson, 
of  ton  mats  Java  Coffee,  500  Ibs.,  at  -JO. 

T.  U.-o-ij>t<il  bill  from  J.  J.  Anderson,  Brooklyn,  to  C.  N.  Crandl.-.  of 
4  mats  Java  ( •»»'.••:  '^00  Ibs.,  at  10J?.  Feb.  20. 

.V.  Receipt  from  J.  J.  Anderson  to  D.  T.  Ames,  for  cash,  in  full  of  hia 
account. 

!>.  Iteceipted  bill  from  J.  J.  Anderson,  Brooklyn,  to  .1.  \V.  Swank,  for 
60  Ibs.  Coffee,  at  12?  ;  1  hhd.  Molasses,  125  gals.,  at  50?. 

in.  Twenty  days'  draft  drawn  by  Park  &  Tilfurd,  NYw  York,  Feb.  25; 
on  J.  J.  Anderson,  Brooklyn,  and  accept-  <1  l>y  him,  favor  of  A.  C.  I/obeck. 

//.  Letter  from  \V.  H.  I'utri.-k.  . •nr-l-^injr  his  check  for  $06.20,  wl.irli 
we  had  agreed  to  accept  as  a  compromise  in  tin-  M-ttU-iiH-nt  of  his  account. 
The  letter  should  express  a  proper  appr-  thf  favor.  l-*«-l».  28. 


TEST    EXERCISES    AND    FORMS.  83 

12.  Receipted  bill  from  J.  J.  Anderson,  Brooklyn,  to  H.  A.  Spencer,  of 
5  hhds.  Sugar,  7800  lbs.(  at  8tf.    Feb.  28. 

13.  Receipt  from  Acker,  Merrall  &  Co.  to  J.  J.  Anderson,  for  cash,  in 
full  of  %.    Feb.  28. 


5.   PAPERS  TO  ACCOMPANY  SET  3.     (Page  67.) 

1.  Bill  from  H.  B.  Claflin,  New  York,  to  James  Sanford  at  four  months' 
credit,  of  5  cases,  8310  yds.,  Wamsutta  Muslin,  at  31^.     Feb.  1. 

2.  Receipted  bill  from  James  Sanford,  Albany,  to  James  Shepard,  of 
1  case,  1710  yds.,  Wamsutta  Muslin,  at  34^.     Feb.  2. 

r    3,  Bill  from  James  Sanford,  Albany,  to  C.  A.  Wai  worth,  of  2  cases, 
3250  yds.,  Wamsutta  Muslin,  at  35/<.    Feb.  3. 

4.  Bill  from  A.  T.  Stewart  &  Co.,  New  York,  to  James  Sanford,  three 
months'  credit,  of  6  cases,  8556  yds.,  Amoskeag  Prints,  at  23^.    Feb.  4. 

5.  Bill  from  James  Sanford,  Albany,  to  J.  C.  Bryant,  of  2  cases,  2816  yds., 
Amoskeag  Prints,  at  25/'.     Feb.  5. 

•ft.  Receipted  bill  from  James  Sanford,  Albany,  to  L.  L.  Williams,  of 
3350  yds.  Wamsutta  Muslin,  at  33^.    Feb.  7. 

7.  Bill  from  James   Sanford,   Albany,   to   H.    P.    Perrin,   of  2   cases, 
2794  yds.,  Amoskeag  Prints,  at  26?'.    Feb.  9. 


6.   PAPERS  TO  ACCOMPANY  SET  3.     Continued.    (Page  68.) 


Jf.  H.  B.  Claflin's  draft,  at  three  months — dated  New  York,  Feb.  8 — 
on  James  Sanford,  Albany,  for  $1500,  favor  of  C.  C.  Curtiss,  and  accepted  by 
Sapford,  Feb.  10. 

2.  Bill  at  30  ds.  from  A.  T.  Stewart  &  Co.,  New  York,  to  James  San- 
ford, of  5  cases,  6800  yds.,  Am.  Fancy  Prints,  at  10^.  Feb.  10. 

/3.  Receipted  bill  from  James  Sanford,  Albany,  to  A.  L.  Wyman,  of 
20  pcs.,  710  yds.,  Am.  Fancy  Prints,  at  11^.     Feb.  12. 

4.  Bill  from  James  Sanford,  Albany,  to  J.  J.  Souder,  of  1492  yds. 
Amoskeag  Prints,  at  25/-.  Feb.  12. 

/£,  Note  at  30  ds.,  made  by  J.  J.  Souder  in  favor  of  James  Sanford  for 
$373,  dated  at  New  York,  Feb.  12,  and  payable  at  Wall  St.  Bank. 

(i.  Note  at  30  ds.,  made  by  C.  A.  Walworth  in  favor  of  James  Sanford 
for  $1137.50,  dated  at  New  York,  Feb.  13,  and  payable  at  East  River  Bank. 


84  TEST    SXKRCISSS    AXD     FORMS. 

'raft  at  10  ds..  drawn  by  James  Sanford,  New  York,  Fob.  15,  on 
II    r   IVn  in.  Buflklo,  favor  of  A.  T.  Stewart  &  Co.,  for  $730  1 1 

K.   i;  ,  ..,|,t,il  bill  from  James  Sanford,  New  York,  to  W.  M.  Carpenter, 
of  815  yds.  Am.  Fancy  Prints,  at  ll\*.    Feb.  90. 

.''.  i'.ill  at  80  ds.  credit  from  James  Sanford,  Albany,  to  T.  B.  Stowell, 
of  1454  yds.  Amoekeag  Print*,  at  J  yds.  Am.  F.mry  Prints,  at  1W. 

Feb.  20. 
K 

JO.  Note  at  80  da.  from  T.  M.  Stow.-ll.  dated  N.-w  York.  Frb.  20,  in 
favor  of  Jamea  Sanford,  for  $882.84,  payable  at  lmi«.rt.-rs  and  Traders' 
Bank.  Feb.  25. 

/  /.  Kereipt  from  James  Sanford,  Albany,  for  $704,  to  J.  C.  Bryant, 
in  full  of  ",-.  Feb.  85. 

/?.  Receipt  from  A.  T.  Stewart  &  Co.  r>  James  Sanford,  in  full  of  %. 
Feb.  25 


7.   PAPERS  TO  ACCOMPANY  SET  4.     (Page  69.) 

1.  Note  of  W.   P.  Spencer  for  $2000,  dated  Buffalo,  March  1,  at  tlm.- 
months,  with  interest,  in  favor  of  A.  M.  Clapp,  uir.l  payable  at  N--w  York  & 

Hank. 
x" 

'.'.   Note  of  Stu.lt-nt,  favor  of  J.  Brown  &  Co..  dated  Buffalo,  Jan.  27,  at 
80  ds.,  and  payable  at  Niagara  Bank,  for  $12000. 

:t.  Bill    from   Student.  Buffalo,  to  Millard  Fillmore,  of  1   set  FnninH.  d 
Furniture,  $75;    1   do.    Black   Walnut  (oilrd)   $275;    1   Carved   Rosewood 
,  $100.    March  2. 


4.  Millard   Fillmore's  note,  dated  BufValo,  March  2,  at  8  mos.,  favor  of 
Student,  and  payable  at  Student's  office,  $450. 


^/J.  Ref«-i|itfd  bill  from  Student.  Buffalo,  to  Jann-s  Truman,  of  1 
any  Settee.  $45;  6  Parlor  Chairs,  at  $6  ;   1   Rosewood  Tete  i  Tete,  $75  : 
1  Black  Walnut  Library  Book  Case.  $80.    March  :;. 

'  6'.   Bill   from    Studi-nt,    Buffalo    to   A     \V.    Smith,  of    1    Blm-k   Walnut 
Prrach  Bedstead,  $5  .-ion  Dining  Table,  $^~i  .  1  Knam.'l.d  B*-<!n>om 

Suit.  $-C>.     Mur.-h4. 

tf.  Bill   from   Student.  Buffalo,  t  .  .1     H    (iold.-mith  <i\»tn  at  (50  ds.),  of 
6  CJ.rthir  n»ain«,  at  $7;    1    B.  W.  I)r«-«sinjr  Bun-au.  $55;    1    Fn-m-h   M:mti-l 
.-..wwiMxl  and  Brocatelle  Parlor  Chairs,  at  $10.    March  5. 

^S.  J.  H.  Qoldnnith's  note,  fulfillinjf  above  conditions. 
.   9.  Receipt  from  Student  to  A.  W.  Smith,  Feb.  6. 


TEST    EXERCISES    AND     FORMS.  85 

10.  Receipted  bill  from  Student,  Buffalo,  to  Geo.  T.  Smythe,  of  12 
Dining  Chairs,  at  $3;    1  B.  W.  Child's  Crib,  $15;    1  Orn.  Etagere,  $45. 
Marcli  6. 

11.  Receipt  from  J.  M.  Phillips  for  rent  of  Store,  No.  159  Main  St., 
one  month,  $125. 


8.   PAPERS  TO  ACCOMPANY  SET  5.     (Page  70.) 

1.  Bill  to  fill  the  conditions  of  sale  of  Apr.  3. 

2.  Bill  to  fill  the  conditions  of  sale  of  Apr.  4. 

3.  Receipt  for  payment  to  DeGraaf  &  Taylor  of  Apr.  4. 

4.  Bill  to  fill  the  conditions  of  sale  of  Apr.  5. 

5.  Bill  to  fill  the  conditions  of  purchase  of  Apr.  6. 
G.  Bill  to  fill  the  conditions  of  sale  of  Apr.  8. 

7.  Bill  and  note  to  fill  the  conditions  of  sale  of  Apr.  9. 

8.  Receipt  to  A.  W.  Smith,  as  per  payment  Apr.  11. 


;  9.   PAPERS  TO  ACCOMPANY  SET  6.     (Page  71.) 

1.  Bill  and  note  filling  the  conditions  of  purchase  of  Jan.  2. 

2.  Invoice  of  shipment  of  Jan.  3  ;  *   also  letter  addressed  to  consignees, 
covering  invoice  and  making  suggestion  asto  Sales. 

t.  Bill  filling  conditions  of  sale  of  Jan.  4. 

f.  Invoice  of  shipment  of  Jan.  5,  with  accompanying  letter  to  con- 
signees. 

^?>.  Bill  filling  conditions  of  sale  of  Jan.  7. 

*TT.  Bill  filling  conditions  of  purchase  of  Jan.  10,  also  draft  as  prescribed. 
7.  Invoice  of  shipment  of  Jan.  11,  with  accompanying  letter  of  instruc- 
tions to  consignees. 

ft.  Account  of  sales  received  from  Sanford  &  White,  Jan.  15,  covering 

\tlje  following  items:    Total  Sales  — 11192  Ibs.    Sugar,   at  15^,   $1678.80; 

Winrge«— Freight,   $12;    Storage  and  adv.,  $27.98;    Insurance,  \%,  $2.10; 

Cooperage,    $19.80 ;    Commission,   %\%    on   sales,   $41.97 ;    Net  proceeds, 

$1575.* 

*  Models  of  Invoice  and  Account  Sales  on  page  88. 


>•'•  TEST    SXKRCJ8SS    AND    FORMS. 

9.  Account  of  sale*  received  from  San  ford  &  White,  Jan.  2.\  of 
No.  8,  covering  the  following  items  :    Total  Sale*— 11%%  Ibe.  Currum*.  «t 
$8*1.06;  Okurgm    Freight.  $5.10;   Storage.  $5.88:   Insurance,  JJfe,  $0.50  ; 
Commission,  *\%  on  salt*,  $8.90  ;  Net  proceeds,  $8T5. 

JO.  Bill  filling  condition*  of  pure  huso  of  Jan.  26. 
'  /  /.  Sight  draft  on  Sanford  &  \Vhiu-,  aa  prescribed,  Jan.  96. 
/  ,'.   Bill  and  note  filling  conditions  of  sale  of  Jan.  87. 


10.   PAPERS  TO  ACCOMPANY  SET  7.    (Page  73.) 

/.  Bill  filling  conditions  of  purchase  of  May  8. 

/ 
2.  Accepted  draft  as  prescribed  in  connection  with  above  purchase. 

'3.  Invoice  of  consignment  from  Thompson  &  Hayes,  Chicago,  100  brls. 
Western  Extra  Flour. 
. 
4.  Receipted  bill  of  50  brls.  Flour,  sold  May  5,  from  Thompson  &  Hayes' 

Sales,  to  J.  L.  Carpenter. 
/ 

£.  Bill  of  Flour  sold  J.  L.  Hunt.  May  5. 
i 

6.  Receipted  bill  of  Flour  sold  May  b*. 
(/ 

7.  Invoice  of  second  consignment  from  Thompson  &  Hayes  of  100  brie. 

Mess  Pork,  received  May  8,  with  accompanying  letter. 

^8.  Bill  filling  conditions  of  sale  to  D.  B.  Ivison,  May  8.    Also  note  given 
by  Ivison  in  connection  with  said  transaction. 
iS 

9.  Account  Sales  of  Flour  to  Thompson  &  Haves,  as  per  items,  May  9, 
with  accompanying  1< 
I/ 
in.  Bill  <,f  Flour  from  Sales  No.  2,  as  per  transact i..n  «.f  May  10,  with 

sight  draft  <>n  \V.  If.  C.  ft  Co, 
i^ 
/  /.  Thompson  &  Hayes'  dft,  as  per  indication  of  May  11. 

/  .'.  Invoice  of  Wheat  from  J.  R.  Wheeler,  as  per  May  12. 

13.  Bill  of  Wheat  sold  May  13. 

/  /.  Invoice  of  Rye  and  Oatu  from  Thompson  &  Hayes,  as  per  May  14. 

1.-,.  Bill  of  Pork,  sold  Ma. 

/  '•'.  Account  Sales  of  Pork,  sold  for  Thompson  &  Hayes,  as  per  items, 
May  16. 


TEST    EXERCISES    AND    FORMS.  87 

voice  of  Wheat  from  J.  R.  Wheeler,  as  per  May  17. 
1$.  Bill  of  Rye,  sold  J.  L.  Hunt,  May  18. 

IX 

19.  Bill  Timothy  Seed,  bought  of  J.  &  A.  Manning,  May  18.     Note 
given  in  exchange  therefor. 

V 

20.  Invoice  of  Flour  from  Thompson  &  Hayes,  May  20. 

I/ 

21.  Receipt  to  3.  L.  Hunt  for  cash,  paid  May  23. 


11.  PAPERS  TO  ACCOMPANY  SET  8.     (Page  75.) 
*/ 

I.  Bill  of  Wheat  sold  James  Butler,  June  3. 

L' 

£.  Account  of  Sales  of  Wheeler's  Sales  No.  1,  as  indicated  June  3. 

3.  Bill  of  Muscovado  Sugar,  as  per  purchase,  June  4. 

^  / 

4.  Draft  on  E.  G.  Folsom,  as  indicated  June  4. 

5.  Thompson  &  Hayes'  draft,  as  per  June  5. 

6.  Bill  of  Muscovada  Sugar  sold  Timmons,  June  7.     Timnaot 
for  same. 

i^ 

7.  Receipted  bill  for  25  brls.  Flour,  sold  June  8 ;  D.  H.  Cochran,  pur- 
chaser. 

^" 

8.  Receipted  bill  for  400  bush.  Timothy  Seed,  sold  June  12  ;  D.  B.  Ivison, 

purchaser. 

.9.  Receipted  bill  for  300  bush.  Oats  from  T.  &  H.'s  Sales,  June  15  ; 
W.  H.  Gray,  purchaser. 
f 
1O.  Account  Sales  rendered   Thompson  &   Hayes,    as    per    items    of 

June  15. 
S 

II.  J.  R.  Wheeler's  sight  draft,  as  per  transaction  of  June  16. 
V 

12.  Bill  of  Wheat  and  Flour,  sold  James  Doolittle,  June  18. 

13.  Account  Sales  rendered  Thompson  &  Hayes,  as  per  items,  June  19.    • 
I/ 

14.  Receipted  bill  of  500  bush.  Wheat  from  Wheeler's  Sales,  June  20  ; 

Wm.  A.  Miller,  purchaser. 
*  15.  Account  Sales  rendered  J.  R.  Wheeler,  as  per  items  of  June  21. 

Id.  Lathrop  &  Moore's  note,  as  indicated  in  transaction  of  June  28.     .A 
*^7.  J.  R.  Wheeler's  draft,  as  indicated  in  transaction  of  June  29.  • 


M 


TMST    BXERCI8RS    A.\I>     FORMS. 


INVOICE    OF    SHIPMENT. 


brvon  /  '/•-.  .'....,     soron)* 

to  be  told  on  ow  %  and  ritk. 


„..,,. 

88*       11468* 

i.l», 

4-1                M* 

—  — 

IMJ 

!  ' 

* 

7 

!!','.-     >  :.-.,•. 

MM 

I'.!-.1 

88 

MB 

4* 

1640  — 

40                   1 

1193*  lb».      ...    -    IX 

1848 

"04 

HAMU*  A  McGBMoa. 

CDICUOCATI,  Jan 

•'•'• 

u«a  weight. 

*  Tare.    «  Total  groM  weight. 

4  Total  tare.    •  Total  net  weight. 

ACCOUNT    SALES. 

AOOOCST  BALKS  of  7  Uhdt.,  11192  ft*.,  Sugar,  for  %  and  ritk  of 
HAMLIN  &  MC<|REOOR,  C'ii«-iiii,<iti. 


•M 
Jan. 

M 

Jamci  N.  Kimball,  30  da. 

4  hhds..  6880  Ibs.    -    -    15* 

908 

85 

15 

Brron  Horton,  each, 

8  hhd».,  4803  Ibs.    -    •    15< 

•no 

45 

1678 

80 

m  

Jan. 

5 

V       1     lit       »w4   y*     -  .    .  T  . 

u 

98 

8 

10 

19 

tl 

80 

80 

11  ft  McO  'a  Net  Proccedii  ...... 

K.73 

E.  ft  O.  E.                           &*]«roBD  ft  WHITK. 

CoLUKBUi,  /m.  15,  l&H. 

ACCOUNT    CURRENT. 
E.  M.  PACKARD,  in  Account  Current  with  L.  \V.  (IAKTZ  &  Co. 


Ml 

Dr 

Jan 

I 

If  ild)    gf  pff  3111  mxlcred  (60  d«  )    

*'   'i 

18 

•* 

7 

••                                      . 

•  , 

M 

IS 

**               **                **          (80  d»)--          ..... 

GO 

M 

» 

1)4 

1IW  •• 

fif 

Jan. 

10 

, 

to 

TtrmA.  10  11«    on  If    P   If  11  lor      -     . 

9V) 

— 

J114 

PWLADKLTBIA.  /V6.  1,  M&5. 

(For  complete  iMtraedon  to  rraderioK  and  eqoatlag  Account*  Bale*  and  Current,  see  the 
PACK  ABO  COCTIBTUI,  A«mntBTU»."1 


CHAPTER    V. 
BUSINESS    CORRESPONDENCE. 

§  138.  —  The  ability  to  write  a  good  letter  is  one  of  the  chief 
requisites  of  an  accountant,  as  it  is  a  necessary  qualification  of 
the  business  man.  To  acquire  facility  in  letter-writing  much 
practice  may  be  necessary,  and  to  be  an  efficient  correspondent 
is  to  be  not  only  a  master  of  forms  but  of  expression,  and  par- 
ticularly of  the  subjects  embraced  in  the  correspondence.  To 
teach  the  art  of  letter- writing  is  a  simpler  matter;  and  to  that 
purpose  this  chapter  is  devoted. 

§  139.  —  The  two  chief  requisites  of  a  letter  are  (1)  that  it 
shall  be  in  proper  form,  and  (2)  that  it  shall  express  the  exact 
thought  of  the  writer. 

§  14O.  —  The  form  or  structure  of  a  letter  comprises  (1) 
Materials,  (2)  Arrangement,  (3)  Penmanship. 

§  141.  —  The  expression  of  a  letter  relates  to  the  proper  use 
of  words,  both  as  to  their  meaning  and  their  grammatical 
sequence. 

STRUCTURE. 

§142. —  1.  Materials.  These  are,  briefly,  pen,  ink,  and 
paper,  which  should  be  of  good  quality  and  appropriate. 

The  best  pen  for  any  writer  is  that  one  which  will  enable  him 
to  do  the  best  work  with  the  greatest  ease.  Whether  it  be  made 
of  gold,  of  steel,  or  of  the  "  gray  goose  quill "  is  immaterial. 

The  best  ink  for  commercial  use  is  a  good  quality  of  fluid 
which  flows  readily,  and  when  dry  becomes  a  permanent  black. 
Colored  inks  of  whatever  tint  are  out  of  place  in  a  business 
communication. 

§  143.  —  The  paper  should  be  of  good  consistency  and  color, 
with  a  surface  that  pleases  the  writer,  and  encourages  him  to  do 
good  work.  The  size  and  shape  of  the  letter  sheet  is  somewhat  a 
matter  of  taste;  and  yet  the  ordinary  uses  of  business  limit  these 
to  the  quarto,  or  letter  sheet,  measuring  8  by  10  inches,  and  the 
octavo,  or  note  sheet,  measuring  5  by  8  inches. 


'.'ti  BUStySSS     CORRESPONDENCE. 


§144.  —  Tin1  two  M/<  s  .-f  rmrlopi-  in..  .-I  in  us,-  are  known  a- 
No*.  5  and  6;  the  former  measuring  al»out  \\\  l»y  :>J  inrlir-,  ami 
the  latter  about  3J  by  6  inches.  No.  6  is  the  most  «>n\.  MM  m 
si«e  for  general  use,  in  that  it  arrommodatrs  moiv  n-adih  tin- 
folded  sheet  and,  from  not  titling  H>  snugly,  is  ni'.rr  ra-ily  oprned. 
F»r  ollicial  connnunirations.  inanu.-rripts,  legal  dociinn  nt~.  , 
the  official  envelope-  —  usually  about  9  inches  long  —  is  tin  nm.-t 
convenient. 

§  145.  —  The  best  color  for  paprr  and  i-n\  elope  is  plain  white, 
although  buff  envelopes,  in  ordinary  eorrrspomU-nrc,  are  much 
used.  It  is  in  good  taste  to  imprint  upon  tin-  In  ads  of  letter 
sheets,  as  also  upon  the  face  of  the  envelope,  the  style  and  address 
of  the  business  house,  or  of  the  individual  ;  but  too  much  display 
should  not  be  made  of  either.  To  print  an  address  on  the  envelope 
will  secure  the  prompt  return  of  the  letter  to  the  writer,  in  case 
the  person  to  whom  it  is  addressed  is  not  found. 

§  146.  —  2.  Arrangement.  The  material  of  a  letter  should 
be  properly  arranged.  This  consists  of  (1)  the  date,  (2)  the  name 
and  address  of  the  person  to  whom  the  letter  is  written,  (3)  tin- 
salutation,  (4)  the  body  of  the  letter,  (5)  the  complimentary  close, 
and  (0)  the  signature. 

g  147.  —  The  following  example  will  indicate  the  usual 
formula  : 

(FORM  1.) 


York,  Jan.  10,  1884. 

^Roberts  Brothers, 
Buffalo. 

<s>  Gen  tlem en :  (4)  We  sen d  you 
by  to-day^ s  express,  as  per  your  order  of 
the  8th,  one  doz.  copies  "Fairy  Land  of 
Science,"  for  which  please  find  bill  en- 
closed. 

"Yours  truly, 

(»C.  T.  Dillingha: 


BUSINESS     CORRESPONDENCE.  91 

§  148.  —  This  formula  may  be  varied,  according  to  circum- 
stances, and  to  suit  the  taste  of  the  writer,  without  offending  the 
rules  of  propriety.  Here  are  a  few  variations  : 

^805  Broadway,  New  York, 

Jan.  10,  1884. 
(2)  Roberts  Brothers, 

Buffalo. 

(3)  Gentlemen : 

U)  We  send  you,  etc., 
(5)  yery  sincerely  yours, 

(6)a  T.  Dillingham. 


^805  Broadway, 

New  York,  Jan.  10,  1884. 
(8)  Roberts  Brothers,  Buffalo. 

(3)  Gentlemen  : 

U)We  send  you,  etc., 

(6)  Yours  to  command, 

(6)C.  T.  Dillingham. 

(REPLY.     FORM  2) 


^Buffalo,  Jan.  12,  1884. 
(»Dear  Sir: 

(^V/e  are  in    receipt   of  your 
favor  of  the   10th,  as   also   of  the  books 
shipped   ua   on    that   date.     Please  accept 
our  thanks  for  your  promptness. 
(8  Sincerely  yours, 

^Roberts  Brothers. 
™C.  T.  Dillingham,  Esq., 
Nev7  York. 


Bl'SiySSS     CORRESPONDENCE. 


§141).  —  3.  Penmanship.    The  Itcauty  and  appropriafc 

of  a  letter  depends.   in    no  small   <  ipofl    it-    penmanship. 

which  should  be,  al>ove  all  things,  plain  and  legible.  If.  at  tin- 
same  time,  it  can  be  easy  and  graceful,  BO  much  tin-  better.  A 
business  letter  should  appear  to  hau-  Urn  written  "off  hand," 
U-arinjj  upon  i:  >  0vid0DOt  Of  gfMl  pain-taking. 

jj  I."»O.  —  All  flourishing  of  capitals,  and  all  ornamental  ,-trokes 
of  whatever  kind,  are  out  of  place,  except  in  the  case  of  a  master 
of  the  pen  whose  grace  lines  are  perfect,  not  overdone,  and  made 

:  into  the  harmony  of  the  work  so  as  to  seem  a  part  of  it. 
To  the  student  who  lurks  this  unusual  faculty,  the-  safest  way  is 
not  to  attempt  any  display.  Neither  should  one  practice  great 
variety  in  the  forms  of  letters.  The  student  should  select  a  style 
of  capitals  and  small  letters  which  he  can  make  most  easily  and 
effectively,  and  stick  to  them.  He  should  "settle  down"  as 
soon  as  possible  into  a  uniform  style  which  he  can  call  his  own, 
and  which  shall  identify  him  while  it  serves  his  purpose. 

§151.  —  The  superscription  of  the  envelope  will  admit  of  a 
little  more  freedom  and  display  ;  but  even  here,  strict  regard 
should  be  had  to  legibility  and  neatness. 


EXPRESSION. 

§  I.V.J.  — A  business  communication  should  be  clear  and  posi- 
tive in  its  purpose,  and  exact  and  unequivocal  in  its  language ; 
and  as  its  language  aims  to  express  its  purpose,  it  is  of  the  utmost 
importance  that  the  purpose  should  exist  clearly  in  the  mind  of 
the  writer  before  he  essays  to  give  it  word. 

£  l.l.'J. — While  it  is  true  that  some  persons  appear  to  possess 
natural  gifts  of  expression,  it  is  also  true  that  forms  of  expression 
have  to  be  learned  whatever  the  natural  Drifts.  The  difference, 
then,  is  that  what  is  easy  for  some  is  hard  for  others ;  and  so 
those  who  do  not  have  expression  by  the  grace  of  God,  must 
attain  it  by  the  grace  of  labor. 

§  154.  —  Thoughts  are  expressed  through  the  agency  of 
words;  and  to  have  plenty  of  words  at  command,  with  the 
ability  to  use  them  according  to  the  best  forms,  is  to  be  a  master 
of  expression. 


BUSINESS     CORRESPONDENCE.  93 

§  155,  —  To  use  words  properly  and  effectively,  it  is  necessary 
to  know — 

1.  How  to  spell  correctly ; 

2.  How  to  choose  the  exact  word  for  the  exact  thought ; 

3.  How  to  build  the  words  into  correct  sentences ; 

4.  How  to  point  off  the  sentences  and  capitalize  the  words, 
so  as  to  secure  proper  reading  and  a  just  sense  of  what  is  written. 

The  style  of  written  composition  depends  upon  the  order  of 
thought  and  mental  habits  of  the  writer.  It  can,  in  a  great 
degree,  be  cultivated,  and  should  be  varied  to  suit  the  occasion 
and  the  purpose. 

§156.  —  1.  How  to  Spell.  It  is  of  little  consequence  to 
say  that  the  spelling  of  English  words  according  to  established 
usage  is  arbitrary,  illogical,  and  ridiculous.  All  this  may  be  true, 
and  yet  it  remains  that  one  must  perpetuate  this  absurdity  or  be 
ruled  out  of  good  society;  for  there  is  no  fault  in  writing  more 
sure  to  be  noticed  and  more  certain  of  condemnation  than  bad 
spelling.  From  the  success  that  has  attended  the  efforts  of  spell- 
ing reformers  it  seems  possible  that  in  a  few  thousand  years  there 
may  be  such  a  thing  in  practice  as  phonetic  spelling ;  but  for  the 
next  century  or  two,  whoever  wishes  to  write  the  English  lan- 
guage acceptably  will  have  to  spell  English  words  as  the  "  best 
usage"  demands. 

§  157. — Spelling  is  wholly  a  matter  of  the  eye  ;  and  to  learn 
to  spell  correctly  is  to  observe  how  words  are  spelled.  There  are,  it 
is  true,  a  number  of  rules — with  plenty  of  exceptions — for  forming 
derivatives,  and  these  rules  can  be  learned  and  are  useful  in  a 
measure ;  but  the  chief  difficulty  is  with  the  primitive  word  to 
which  no  rule  applies. 

To  those  who  are  deficient  in  spelling  there  is  but  one  course 
open — and  that  is  to  learn  to  spell.  Whether  this  may  take  a 
long  or  a  short  time,  or  whether  the  task  be  easy  or  hard,  is  of 
small  consequence ;  the  thing  must  be  accomplished. 

§  158.  —  2.  How  to  use  "Words.  The  difference  between 
good  and  bad  writing  lies  greatly  in  the  selection  of  words. 
Any  smart  and  plucky  boy  can  learn  to  spell ;  the  rules  of 
grammar  are  easily  learned  and  readily  applied ;  what  is  neces- 
sary to  know  about  punctuation  can  be  gathered  in  a  few  hours ; 
but  the  ability  to  choose  the  words  which  shall  express  the  shades 


'.'I  BUBIfTMSa     CORRESPO  A  n  f  \r  /•: . 

of  thought  is  a  rare  •ocomplishment,  and  one  worthy  of  nil 
effort, 

$  15!>.  —  It  is  n  common  fault  of  young  writers  to  use  excep* 
tional  or  "dictionary"  words,  under  tin-  impivvMon  tli:it  the  longer 
and  more  uncommon  the  words  an-,  the  more  important  will  be 
tin-  sentence,  and  the  greater  the  credit  due  to  the  composer.  If 
such  per-ons  will  can-fully  read  the  writings  and  speeches  of  tin- 
great  masters  of  diction  they  will  be  struck  with  the  simplicity 
and  directness  of  their  words.  These  persons  write  and  speak  to 
be  understood. 

Z  MM). —  Another  fault  lies  in  the  use  of  too  many  words,  and 
especially  of  descriptive  words.  Adjectives  have  great  charms  for 
young  writers.  They  seem  to  think  that  the  more  adjectives  they  can 
hang  upon  the  necks  of  their  nouns,  the  stronger  the  nouns  become, 
while  the  fact  is  that  a  strong  noun  is  only  weakened  by  unneces- 
sary embellishments,  while  a  weak  noun  is  not  strengthened.  The 
real  strength  of  a  sentence  lies  in  its  substantives  and  verbs,  and  if 
these  are  properly  selected  very  few  trappings  will  be  needed. 

§161. — Above  all  should  a  writer  use  words  that  are  com- 
monly understood.  The  only  real  object  of  expression  is  to 
convey  our  thoughts  to  others,  and  that  can  be  done  only  through 
forms  of  expression  that  are  understood  by  both  parties.  Hence 
we  should  use  short,  plain,  expressive  words,  such  as  have  I  nit 
one  meaning,  and  that  at  once  apparent.  There  are  very  few 
words  that  can  be  used  interchangeably  without  varying  the  sense. 
De  Quincy  says,  "All  languages  tend  to  clear  themselves  of 
synonyms  as  intellectual  culture  advances,  the  superfluous  words 
being  taken  up  and  appropriated  by  new  shades  and  combinations 
of  thought  evolved  in  the  progress  of  society."  It  is  well,  how- 
ever, to  seek  variety  in  expression,  as  the  frequent  repetition  of 
the  same  word,  although  it  may  exactly  express  the  thought, 
becomes  tiresome  and  shows  a  paucity  of  language.  Besides,  the 
change  of  a  word  to  prevent  repetition  may  often  give  a  new  phase 
to  the  thought,  which  will  add  to,  rather  than  detract  from  the 
force  of  the  sentence. 

§162.  — 3.  How  to  Build  Sentences.  Having  selected 
the  material  for  our  sentences,  the  next  important  thing  is  to  put 
them  properly  together.  To  do  this  is  to  know  grammar;  and  as 
grammar  is  simply  the  Inw  of  language  which  has  grown  out  of, 
and  expresses  "the  usage  of  the  best  writers  and  speakers,"  to 


BUSINESS     CORRESPONDENCE.  95 

know  grammar  is  to  know  what  this  usage  is.  Very  few  people 
always  write  or  speak  with  absolute  correctness,  and  yet  the  ordi- 
nary rules  of  grammar  can  be  learned,  and  should  be  enforced. 
A  palpable  grammatical  blunder  will  disgrace  a  written  page  quite 
as  surely  as  a  badly  spelled  word.  Both  are  indicative  of  igno- 
rance as  well  as  of  indolence. 

§  163.  —  But  sentences  may  be  grammatically  correct,  and  yet 
lack  clearness  of  expression.  This  comes  not  only  from  using  too 
many  words  in  a  single  sentence  but  from  using  words  out  of  their 
best  connection.  As  a  rule,  sentences  should  be  short,  each  sen- 
tence expressing  a  single  idea,  and  no  more ;  but  if  for  rhetorical 
reasons  it  may  seem  best  to  expand  a  sentence  or  paragraph,  care 
should  be  taken  to  give  breathing-places  at  proper  intervals,  and 
to  avoid  explanatory  or  parenthetical  clauses  not  vital  to  the 
meaning. 

§  164.  —  After  selecting  words  which  will  properly  express 
the  meaning  intended  to  be  conveyed,  and  after  enforcing  the 
rules  of  practical  grammar  in  the  composition,  there  will  yet 
remain  the  necessity  of  aptness  and  grace  of  speech  which,  in 
some  cases  appears  to  be  a  natural  gift,  and  in  others  can  be 
acquired  only  by  steady  and  intelligent  practice  under  the  right 
guidance.  For  this  purpose  nothing  is  so  good  as  careful  reading 
of  proper  books.  It  is  hard  to  originate  a  form  or  style  of  expres- 
sion ;  in  fact,  nobody  does  it,  and  to  attempt  it  would  be  to 
fail  in  the  worst  way.  Our  form  of  expression,  to  be  natural, 
must  represent  our  form  ,of  thought.  "We  should  write  as  we 
speak,  making  use  of  the  words  and  phrases  which  spring  up  in 
the  mind  as  the  very  conception  of  the  idea.  Any  deliberate 
planning  of  the  form  of  a  sentence  will  result  in  a  mechanical 
structure  which  will  be  hard  and  unnatural.  To  speak  well  we 
should  mingle  with  those  who  habitually  speak  well  ;  to  write 
well  we  should  familiarize  ourselves  with  the  best  forms  of  literary 
composition. 

§  165.  — 4.  How  to  Punctuate.  The  rules  of  punctuation 
applicable  to  the  best  forms  of  English  composition  are  equally 
applicable  to  letter-writing ;  although  very  few  letter-writers 
observe  them  carefully.  A  very  little  study  of  books  and  well- 
erlited  papers  will  enable  any  one  to  use  the  principal  points  with 
accuracy,  and  it  is  not  deemed  necessary  to  elaborate  the  rules 
here.  It  is  said  that  no  two  writers  agree  as  to  the  proper  use 


BfSIXESS     COBB£8PO 


of  a  sour  ..iid  it  miirht  he  further  said  that   n<>  v.ritcr  abso- 

lutely agrees  with  him-rlf.  There  can  be  no  \alid  objection  to 
using  the  semicolon  in  letter-writ  in«;.  although  it  i-  hardly  n 
aary  to  do  so,  and  in  business  letters  it  is  rarely  dour;  but  the 
comma,  the  jn'riod,  and  the  interrogation  point  c;1n  he  u>«  ,1 
without  danger  of  misplacing  them,  an«l  without  subjecting  tin- 
writer  to  the  charge  of  jK-ilaniry  or  dilettaiiteism. 

8  166.  —  The  use  of  Capitals  is  a  matter  which  a  few  hints 
and  a  little  observnt  ion  will  regulate.  There  can  lie  no  inflexible 
rules  for  using  capitals  in  all  cases,  any  more  than  there  can  be 
for  emphu-ixing  words.  There  are,  howe\er,  certain  limits  which 
must  be  oh.-erved.  and  certain  rules  which  have  no  exceptions. 

Capital  Irttrrs  sJionI<l  be  nsrd  — 

1.  At  the  beginning  of  every  sentence  ; 

2.  At  the  beginning  of  every  line  of  poetry  ; 

8.  At  the  beginning  of  every  quotation,  forming  a  sentence  ; 

4.  As  the  initial  letter  in  all  words  denoting  Deity  ; 

5.  For  proper  names  and  titles  ; 

6.  For  adjectives  derived  from  proper  names  ; 

7.  For  names  of  things  used  as  persons  ; 

8.  For  names  of  the  months  and  days  of  the  year  ; 
0.  For  the  pronoun  "  I  "  and  the  interjection  "  O." 

§167.  —  5.  Style.  Literary  style  is  so  personal  a  matter, 
depending  so  much  upon  the  temperament  and  peculiarities  of 
the  writer,  that  it  is  difficult  to  classify  it,  or  to  suggest  any 
methods  that  would  help  the  student  to  a  style  of  his  own.  It  is 
proper,  however,  to  recognize,  in  a  general  way,  the  difference 
between  a  purely  literary  style  and  an  epistolary  style  —  albeit 
some  of  our  best  literary  productions  are  in  the  form  of  familiar 
letters. 

§  168.  —  Some  one  has  said  that  letter-writing  is  "  talking  on 
paper"  —  but  this  applies  equally  well  to  other  kinds  of  writing. 
As  a  rule,  however,  letters  are  less  formal  in  their  style  than 
other  kinds  of  composition  ;  just  as  conversation  with  a  single 
individual  is  less  formal  than  an  address  to  an  audit  -nee.  In 
ordinary  business  (•onv^pondence  there  is  little  occa-ioii  to  display 
rhetorical  accomplishments  or  erudition.  A  "flowery"  or  a 
"profound**  epistle  is  generally  out  of  place  in  the  counting-room, 
or  as  between  business  men.  The  necessities  of  business  preclude 
long  letters  and  unnecessary  words.  If  a  letter  expresses  all  the 
facts  in  a  clear  and  proper  manner,  the  shorter  it  is  the  better. 


BUSINESS     CORRESPONDENCE.  97 

§  169.  —  There  are,  however,  distinctions  to  be  observed  in 
business  letters,  depending  not  only  upon  the  subject- matter  of 
the  communication  but  upon  the  relations  between  the  parties. 
Letters  to  superiors  in  position  should  be  deferential  and  respect- 
ful ;  to  inferiors,  kindly ;  and  to  friends  and  equals,  familiar. 
Letters  to  strangers  should  be  more  formal  and  careful  in  expres- 
sion than  those  to  acquaintances.  Letters  of  condolence  should 
be  tender  and  thoughtful ;  and  those  of  congratulation,  bright, 
cheerful,  and  joyous. 

§  17O. —  Some  persons  affect  an  epigrammatic  style  of  expres- 
sion as  being  pointed  and  forcible;  others  deem  it  a  virtue — 
possibly  an  exhibition  of  modesty — to  use  the  predicate  without 
the  subject,  particularly  when  the  subject  is  of  the  first  person 
singular.  It  is  best,  as  a  rule,  that  written  sentences  should  be 
complete ;  and  the  time  saved  by  the  writer  or  the  reader  in  the 
omission  of  words  to  secure  brevity  is  as  nothing  when  placed 
against  the  "jerky"  and  incomplete  sentences  which  result. 

§  171.  — Another  thing  to  be  avoided  is  oracular  expressions, 
either  as  to  the  main  subject  of  the  communication  or  as  incidental 
thereto.  While  an  exhibition  of  mock  modesty  is  to  be  depre- 
cated, the  superior  tone  of  the  man  who  assumes  to  be  the  teacher 
of  his  correspondent  is  not  only  silly  but  offensive. 

BRIEFING-    LETTERS. 

§  172.  —  All  business  documents  of  importance  should  be 
kept  and  filed  away  so  as  to  be  accessible  when  called  for.  There 
are  various  ingenious  devices  to  this  end,  mostly  so  arranged  as 
to  preserve  the  letter  or  document  intact,  where  it  may  be  had 
at  any  time  for  reperusal.  A  better  plan  for  some  purposes — 
notably  for  Government  Departments  where  documents  have  to 
be  referred  to  frequently  for  the  main  points  contained — is  to  file 
them,  neatly  and  uniformly  folded,  in  packages,  writing  upon  the 
outside  of  each  as  folded,  a  "brief"  of  its  contents,  so  that  the 
desired  facts  may  be  gathered  without  opening  the  document,  or 
even  taking  it  from  the  package. 

To  "  brief  "  a  document  properly  requires  a  clear  and  perfect 
understanding  of  its  contents,  and  the  ability  to  so  state  its  main 
points  in  the  smallest  space  that  a  more  complete  perusal  will  be 
unnecessary  in  order  to  its  main  import. 


B  I'S  I  .V  K  S  ti     C  O  R  K  X  .V  /•  i  '.w  K  IfCS. 

MATERIAL    FOR    PRACTICE. 
ARRANGEMENT.    ( jj  1 4«;. ) 

/.  Put  in  PK>IKT  form,  ropyinj;  in  full,  tin-  following:  Date — Boston, 
July  .'».  1>:  >  B  l'u«  Kurd  ^  1 1  road  way, 

Sil'it<ition—\*  is   best.      Body  —I   ship  you    by   i.. 

expreM  20  ream*  Bwt  rah-ndered  Pembroke  Mills  Book  Pa|«T,  ns  JHT  invoice 
enclosed  ;  trusting  that  you  may  receive  it  in  tiim-  t»  fill  yuur  order  us  in-li 
eated  in  your  letter  of  yesterday.     I  shall  be  glad  to  know  ..i  its  prompt  and 
safe  arrival.     Signature—  II.  K    llibbard. 

ifate— 24  Port  St.,  San  Fm:  '..  March  10, 1885.    Signature— 

•dbiiry.     Jiody  of  Letter—  Send  me  by  return  mail  1  c..p\  S\v  in  ton's 
idles,  beat  edition,  with  bill  for  game.    Party  addrated—lviaoo, 
Blakenian,  Taylor  &  Co.,  753  Broadway,  New  York. 

S.  (Reply  to  above.)  Dote— 753  Broadwny,  New  York,  Manh  17,  IKS.-,. 
Signature — Ivison,  Blakeman,  Taylor  &  Co.  Body  of  Letter— Your  favor  of 
the  10th  is  at  hand,  and  we  send  you,  as  pi-r  rcijiirst.  Sw'mton'n  \Yonl  Studies 
(Library  Binding).  Please  find  bill  enclosed.  Party  addreated—V.  C.  Wood- 
bury,  24  Post  St.,  San  Francisco. 

^.  lie-arrange  the  following,   so  as  to  constitute  an   intelligible  and 

proper  letter :  Very  sincerely  yours 1  have  your  letter  of  yesterday,  and 

beg  to  say  in  reply  that  our  present  stock  of  fabrics  is  very  low.     We  are 
expecting  our  Spring  importations  by  next  steamer,  due  here  on  tin-  1.1th.  and 

to  be  able  to  send  our  new  lists  early  next  week.     Robert  Bums 

K    H.  .1  >hnson  &  Co. New  York.  Feb.  12,  1884.      115  Market  Street, 

Philadelphia. 


SPELLING.    (§156.) 

Copy  the  following  paragraphs,  correcting  thn  misspelled  words.  In  the 
first  four,  the  misspelled  words  are  italicized  ;  in  the  last  two,  thr-y  arc  left 
for  the  student's  keen  eye  :* 

/.  DEAR  JOBS:    I  writ**  •  '  •    to  the  bmtneu  of  which  we  spoke 

when  last  we  met.  I  understood  you  to  say  that  ym\  had  been  offei-red  much 
better  terms  for  the  tfpfrntf  article*  than  I  offrrred  you  for  the  lot  t,^/,-nthrr. 
I  would  like  the  prittlege  of  renewing  my  offer,  which  I  can  now  do,  upon  a 


•  SpeOJng  fa  M  much  •  matter  of  night  that  It  !•  Mmowhat  dangerou*  to  pro-cut  mi»- 
iptUtd  words  tor  correction ;  Ike  danger  being  that  the  eye  becoming  familiar  with  tin-  f«mi 
will  be  apt  to  reproduce  It  unconsciously.  Thin  proceM  cannot  be  n-ll<-d  u|x>n  for  « i' 

r.  and  fa  given  ban  only  for  the  purpose  of  pointing  oat  a  few  word*  likely  to  be 


BUSINESS     CORRESPONDENCE.  99 

better  understanding  of  the  case.      I  should  have   written   before,   but  I 
prefered  to  wait  untill  I  could  consistantly  carry  out  the  undertakeing. 

You  will  reccottect  that  I  mentioned  a  plan  of  proceedure  which  apeared 
to  mefeasable  and  right :  and  it  is  upon  this  plan  alone  that  I  should  dare  to 
act,  or  recomend  others  to  act.  It  is  indispensable  that  this  view  of  the  case  be 
txcepted  by  you  as  a  basis  of  negotiation  ;  otherwise,  my  preferance  will  be 
to  let  the  whole  matter  rest  indefinately.  For,  as  you  know,  it  would  be  a 
yreivious  error  to  conclude  a  bargin  upon  an  insufficient  understanding. 

I  will  see  you  tomorow  or  Wendesday,  or,  at  the  farthest,  on  the  first  of 
Febuary,  at  which  latest  time  I  expect  to  be  in  town.  Please  acknowlege  the 
recicpt  of  this,  and  let  me  know  if  any  time  other  than  the  dates  specefled  for 
seeing  you  will  better  accomodate  you. 

Yours  affectionately, 

SAMUEL  . 

2.  I  am  sick,  my  dear  Hortense.  I  am  seperated  from  you,  and  my 
heart  is  sick  as  my  body.  I  percieve  that  I  was  not  born,  my  child,  for  so 
much  grandure,  and  I  should  have  been  more  happy  in  retirement,  surounded 
with  the  objects  of  my  love. 

«?.  I  am  going  to  tell  you  a  thing,  the  most  astonishing,  the  most 
surprizing,  the  most  marvellous,  the  most  mirraculous,  the  most  magnifecent, 
the  most  confounding,  the  most  unheered  of,  the  most  singuler,  the  most 
extrordinary,  the  most  incredable,  the  most  unforseen,  the  greatest,  the  lecst, 
the  rairest,  the  most  comon,  the  most  publick,  the  most  privite,  the  most 
briliant,  the  most  envycMe  thing  which  has  occured  during  the  presant 
century. 

&.  A  joaker  is  near  akin  to  a  Ivfoon,  and  nietfter  of  them  is  the  leest 
related  to  wit.  Whoever  is  admited  or  saught  for  in  company  upon  any  other 
acount  than  that  of  his  merrit  or  maners  is  never  respected  thare,  but  only 
made  use  of.  Abject  flatery  and  indiscriminite  contradiction  and  noisey 
debate  disgust.  But  a  modest  asertion  of  one's  own  opinnion  and  a  com- 
placent acquiesence  in  other  people's,  perserve  dignity. 

5.  (Containing  six  misspelled  words.)     Monsieur  de  Stael  is  in  the 
deepest  poverty,  and  his  wife  gives  diners  and  balls.     If  you  still  visit  her, 
would  it  not  ba  well  to  purstfade  her  to  make  her  husband  an  alotAnce  of 
from  two  to  four  hundred  dollars  a  mofenth  ;   or  have  we  reached  the  time 
when  one  can,  without  giving  offence  to  honorable  people,  trample  under  foot 
not  only  morals,  but   eapren  duties  more   sacred  than  those   which  unite 
children  to  parents? 

6.  (Containing  ten  misspelled  words.)    It  is  cloferly  the  interest  of  man- 
kind, and  espedaly  of  that  large  class  who  live  by  the  sail  of  thier  labor,  that 
the  largest  possible  pourtion  of  created  wealth  should  be  set  asside  as  capital 
for  reproductive  purposes,  so  that  the  groth  of  capital  should  do  more  than 
metfrly  keep  pace  with  the  increace  of  the  poppulation. 


100  BUSINESS   CORBMSPOXDEXCS. 

THE  CHOICE  OF  WORDS.    (§!•> 
1.  SUBSTITUTING  WOKDS  AND  PHRASES. 

[The  model  paragraph  contains  italicized  words  ami  phrases,  which  are  to 
be  aul»ti: in i-il  by  the  pupil  fur  words  and  phiasrs  of  his  own,  luiviiu;  i!,,- 
same  or  a  more  appropriate  memiin^,  tin-  object  Ix-ing  to  convey  tl.r  same 
general  sense,  aod  to  use  all  the  words  not  italicized  in  tfirir  order.  Alter 
pr<>  luring  the  paragraph  in  this  form,  let  liiin  reconstruct  it  entirely,  u*\i\z 
his  own  language  without  regard  to  any  of  tin-  \\ords  in  tin-  nn«lt  1.  Ti,.  n- 
should  be  no  attempt  to  HIIJKTK-  >i  a  u..rd  for  the  mere  purpote  of  making  a 
ekamj, .  the  object  being  simply  to  express  the  wnw  in  the  pupil'H  own  lan- 
guage. Follow  the  plan  hud  down  in  the  example  J 

MODEL. 

Street  beggars  practice  on  the  itympathies  of  those  who  are  di*po»cd  to  be 
charitable,  and  they  comprehend  the  device  of  pre«rntiny  thetnteheg  to  good 

le  inth'ivt  exciting  dutriut.  They  eonntitnti-  th<  >n*>lre*  n  br<>tlurli<Mnl 
bound  tojjetlier  by  certain  contidtration*  of  »f If- inter e»t,  and  by  certain 
rec»ffnitioni  which  help  them  to  wort  united' >/. 

SUBSTITUTIONS. 

Street  beggare  PI.AT  ON  THE  FEELING  a  of  those  who  are  KINDLY  DIS- 
POSED, and  they  C?H>KI:<T\XD  the  ART  of  APPROACHING  good  people  ON 

THE   BLIND  8IDK.       They    FORM    AM  '  V.     l«nu,(]    together    l.y   certain 

TIES  of  MITI  AI.  HELPFULNESS  nf  TUEIB  BUSINESS,  and  by  certain  SIGNS 

which    ENABLE  them  to  CO-OPERATE. 

PARAPHRASE. 

Street  beggare  understand  their  business,  and  they  make  a  study  of  those 
whom  they  would  virt'.mi/.e.  They  are  adepts  in  divining  tip  weak  jx>int8  of 
human  nature,  and  know  just  how  to  Uh<-  their  knowledge.  Although  not 
bamlod  together  in  any  formal  way,  they  nevertheless  have  so  much  in  com- 
mon that  they  ure  <]uick  to  learn  each  other's  wants  and  methods,  as  also  how 
to  co-operate  for  their  mutual  advantage. 

EXERCISE  1. 

On  Sunday,  August  22,  1809,  I  went  to  tee  old  Mrs.  Grant,  whom  I  was 

grieved  to  we  »itt;,«j  in  her  chair  supported  by  pillows,  and  her  poor  fret 

ry  much  altered  in  her  face,  and  I  /"//•,  dyinir  of 

dropsy.    On  August  20,  I  saw  her  again,  and  yacc  her  a  shawl  and  a  pair  of 

*.,  k- 


BUSINESS     CORRESPONDENCE.  101 

EXERCISE  2. 

Nobody  ought  to  pretend  to  write  or  speak  unless  he  has  something  of 
consequence  to  say.  It  occasionally  happens  that  we  can  speak  of  something 
essentially  valuable  without  a  great  deal  of  effort,  but  usually  it  is  requisite  to 
exercise  ourselves,  in  order  to  say  anything  apt. 

EXERCISE  8. 

A  pile  of  materials,  however  excellent  the  quality,  no  more  makes  a  com- 
position than  a  mass  of  stone  and  wood  makes  a  mansion.  The  constructor 
must  pick  out,  fit,  and  bring  together  the  objects  before  there  can  be  a  struc- 
ture. A  crowd  of  men  huddled  together  do  not  make  an  army.  The  lines 
must  be  adjusted  and  order  brought  about  before  they  are  fit  for  a  battle. 

EXERCISE  4. 

Great  scribblers  and  orators  have  generally  been  adepts  in  synonyms. 
Robert  Hall  was  particularly  nice  in  his  selection  of  words.  John  Foster 
compiled  his  thesis  on  "  Decision  of  Character,"  with  tedious  slowness.  He 
would  squander  whole  days  on  a  few  brief  sentences,  bringing  each  word 
beneath  his  intense  scrutiny,  so  that  every  one,  challenged  and  scrutinized, 
took  its  position  in  the  building  like  an  examined  soldier  in  the  ranks. 

EXERCISE  5. 

In  sanguine  natures,  the  tendency  to  magnify  is  very  general.  With 
some  people  everything  is  magnificent !  splendid  !  sublime  !  terrible  !  They 
never  come  down  to  use  more  commonplace  or  less  extravagant  terms.  They 
seem  forever  on  stilts,  poised  above  ordinary  mortals.  Occasionally  they  will 
convey  this  feeling  so  far  as  to  make  use — no  doubt  unthinkingly — of  contrary 
terms,  such  as  potently  weak,  immensely  little,  exquisitely  homely,  etc. 


2.    SUPPLYING  WORDS  AND  PHRASES. 

[The  following  exercises  may  be  a  little  more  difficult,  but  they  are  cor- 
respondingly more  efficient  in  the  matter  of  training.  Here  the  pupil  cannot 
rely  upon  the  dictionary  for  synonyms,  but  must  cudgel  his  own  brains  for  the 
fit  words.  He  will  then  develope  language  and  practice  the  art  of  composition. 
First,  let  him  read  carefully  in  the  "Statement"  the  facts  to  be  embodied  ; 
then,  fill  in  the  outline  with  the  proper  words  and  phrases,  using  all  the 
words  of  the  outline  in  their  order,  and  .supplying  only  the  omissions  marked 
by  dashes.  And  finally,  let  him  write  out  the  letter  in  full  without  reference 
to  the  outline,  using  his  own  form  of  expression.] 


CORRKSPONDBXCM. 
STATEMENT. 

This  IH  a  letter  addressed  by  a  merchant  to  his  correspondrnt.  informing 
him  of  a  contemplated  trip  to  Europe.     He  aims  .-m,|  1\  to  put   ! 
puiulont  at  earn  in  reference  to  the  conduct  ot  the  business  dun i it;  liin  •hminoo. 
Informing  him  as  to  the  person  who  will  have  charge,  and  gn  ing  liim  hia 
foreign  address. 

OUTLINE. 


-•'.' 

n>im*'tiT,t    

addressed. 


WORDS  AND  PHRASES  SUPPLIED. 

My  dear  Sir :  I  am  about  to  tad  for  Europe,  to  be  absent  four  months 
or  so.  I  exptct  to  titit  Italy,  Fraurr,  Suit/.,  i lam!,  (iermany,  and  the  low 
countries,  and  sltall  ofeoune  not  neglect  England  and  Scotland.  My  burinett 
during  my  absence  will  be  in  the  hands  of  Mr.  Churl,  s  Si  ymour,  trh<>  trill  act 
for  me  in  all  matters.  I  feel  ture  that  nothing  will  suffer  from  my  tem|n>rary 
absence,  at  Mr.  Seymour  it  fully  competent  to  attend  to  all  matters  at  faitli- 
futiy  at  I  could,  myself.  My  foreign  banker*  are  Brown,  Shipley  &  <'•>, 
London,  to  w/ivm  all  communication*  designed  for  me  per  tonally  should  be 
addressed. 

UNTRAMMELED  LETTER. 

Ni.w  YORK,  AprH  17,  1884, 
JAMES  RASKINS,  Esq., 
Chicago. 

My  dear  Sir:    I  am  about  to  go  abroad  for  a  few 

months,  and  shall  spend  most  of  my  time  on  the  Continent.  My  business 
affairs  will  be  confided  to  my  chief  clerk.  Mr.  Charles  Seymour,  whom  \nu 
know,  and  who  will,  I  am  sure,  so  well  supply  my  plan-  that  my  nl».'iirr  will 
not  be  felt  l.y  my  ciiKtomcrs.  I  shall  return  nhout  the  first  of  S-pti-mlwr  ; 
meanwhile,  any  letters  addressed  to  me,  "  Care  of  Brown,  Shipley  & 
London,"  will  reach  me  promptly. 

Yours  very  sincerely, 

P.   C.    SCHUYLEH. 


.—This  letter  is  dated  at  NVw  York,. Ian.  l.r>,  1KMI.  and   intn. 
dace*  the  bearer,  Mr.  Hardcaatle,  to  Mr.  John  II.  Uol>crtaon  of  Buffalo.     Mr. 


BUSINESS     CORRESPONDENCE.  103 

Hardcastle  visits  Buffalo  with  a  view  to  settling  there  as  a  lawyer.  The 
writer  of  the  letter  has  known  him  for  a  number  of  years,  and  can  speak  of 
his  legal  ability  and  standing  in  the  highest  terms.  He  asks  Mr.  Robertson, 
who  is  an  old  friend,  to  interest  himself  in  the  bearer,  for  which  courtesy  he 
will  be  ever  grateful. 

Outline.* Jan.  15, .    The  bearer,  Mr. , 

is  a  particular  — and  he  visits  locate  .     Mr. 

lawyer  of  good in  this and  I  do  not  hesi- 
tate   strongly extended  to  him  will  be 

by . 

EXERCISE  2 

Statement. — The  letter  is  dated  Boston,  June  1,  1884,  and  addressed  to 
Brown,  Black  &  Co.,  New  York,  informing  them  that  owing  to  the  failure  of 
a  principal  debtor  it  will  be  impossible  for  the  writer  to  meet  an  acceptance 
of  $5000,  due  on  the  15th.  He  states,  however,  that  if  he  can  be  allowed  an 
extension  of  sixty  days  he  has  no  doubt  of  his  ability  to  meet  the  obligation. 


Outline.  — I  am  placed  of  informing 


owing   to it  will   be  .      I  feel  confident,   however, 

of   time,    say I    shall my   obligation. 

hear  from  decision . 


EXERCISE  3. 

Statement. — This  is  a  response  to  the  previous  letter,  acceding  to  the 
request,  and  expressing  sympathy  for  the  temporary  embarrassment  of  the 
correspondent. 

Outline. Permit  us •  reply that  wo 

cheerfully with    reference .      We    hope  

unnecessary  anxiety  . 


EXERCISE  4. 

Statement. — An  acknowledgment  of  the  receipt  of  the  above  letter,  with 
«rann  expressions  of  appreciation  of  the  courtesy  extended. 


uuume.  — 

Kinu   leuer  - 

*  The  student  must  study  arrangement  for  himself,  and  must  use  all  the  words  neces- 
sary to  express  his  meaning.  There  is  no  suggestion  of  sentences  or  paragraphs  in  the 
outline. 


104  BUSINESS    CORRESPONDENCE. 


GRAMMATICAL  CONSTRUCTION. 

[The  exercises  under  this  head  are  intended  to  cover  but  a  few  of  the 
most  common  errors  in  ^nuumar.  To  attempt  to  give  tin-  rules  of  grammar 
•t  any  length  would  be  to  take  this  book  out  of  its  nphere.  In  tin-  first  few 
sentences  the  grammatical  exercises  are  ttaUeiud ;  after  that  tho  student 
most  find  them  for  himself.] 

1.    OOMMOH  EBBOR8-A8  TO  NUMBER  IN  NOUN8  AND  VERBS. 

1.  The  good  wishes  of  the  school  it  hereby  expressed. 

2.  The  remains  of  tho  feast  teat  gathered  in  two  baskets. 
8.  Eith.-r  of  the  men  art  worth  a  million. 

4.  There  it  at  least  two  men  to  one  woman. 

5.  The  {roods  was  damaged  by  the  freshet. 

6.  The  man's  wages  was  equal  to  his  work. 

7.  Neither  one  nor  the  other  were  pleased. 

8.  At  lenM  "IK-  fourth  of  the  crew  was  drowned. 

9.  Pride  and  poverty  makes  a  bad  mixture. 

10.  A  man  with  two  boys  were  already  on  the  spot 

2.    AS  TO  FORMS  OF  VERBS. 

1.  A  man  at  the  mast-head  bio  wed  a  whistle. 

2.  The  water  we  drunk  was  most  excellent. 

8.  When  you  come  to  us  yesterday  we  did  not  know  you. 

4.  The  family  was  at  last  forsook. 

5.  When  you  have  payed  us  we  will  retire. 

6.  The  bell  was  rang  at  four  in  tin-  morning. 

7.  If  you  had  not  trod  on  my  toes,  I  should  missed  you. 
R.  Before  we  left  no  one  had  spoke. 

0.  He  lias  simply  mistook  one  for  the  oth.-r. 
10.  He  sprung  upon  the  man  and  all  was  over. 

3.    AS  TO  THE  NOMINATIVE  AND  OBJECTIVE  FORMS. 

1.  Charles  went  with  James  and  I. 

2.  Who  are  you  going  to  vote  for  ? 

8.  If  I  was  him  I  would  accept  the  offer. 
4.  Father  and  me  are  just  like  two  bmt ! 

.'.   He  included  my  brother  and  I  in  the  invitation. 

6.  Her  sister  and  her  were  in  the  sam«-  class. 

7.  It  was  generally  known  that  him  and  I  were  friends. 

4.    AS  TO  TEE  IMPROPER  USE  OF  ADJECTIVES  AND  ADVERSS. 

1.  Of  my  two  brothers  John  is  the  oldest. 

2.  I  like  him  better  than  anybody. 


BUSINESS     CORRESPONDENCE.  105 

3.  This  is  much  more  preferable  than  the  other. 

4.  I  never  felt  more  nicely  than  I  feel  to-day. 

5.  This  tree  is  over  eighty  fojt  high. 

6.  Unless  you  speak  more  distinct  I  cannot  understand  you. 

7.  Unless  you  play  fair  you  cannot  play  at  all. 

8.  I  never  felt  so  awkwardly  in  my  life. 

9.  I  never  knew  any  one  to  behave  so  bad. 

10.  That  work  was  done  good  enough  for  anybody. 

5.    AS  TO  PREPOSITIONS  AND  CONJUNCTIONS. 

1.  Either  he  or  you  have  got  to  make  a  concession. 

2.  James  took  a  great  interest  into  his  studies. 

3.  He  is  never  in  want  for  good  advisers. 

4.  He  sat  down  onto  the  sofa. 

5.  I  am  to  work  on  my  arithmetic  lessons. 

6.  If  they  had  only  of  come,  I  should  of  gone. 

7.  Neither  he  or  his  sister  had  much  to  say. 

8.  I  took  my  feet  off  of  the  rug. 

9.  If  I  but  knew  where  they  were  going  to  I  would  follow. 
10.  I  walked  by  a  caae  with  moonlight. 

6.    MISCELLANEOUS  EEEOES. 

1.  The  slothful  boy  lays  a-bed  till  noon. 

2.  Would  you  go  there  if  you  was  me  ? 

3.  I  have  been  in  business  this  forty  years. 

4.  I  cannot  see  what  there  is  in  them  dogs. 

5.  It's  just  too  nice  for  anything. 

6.  I  think  he  acted  very  strange  about  it. 

7.  How  do  you  do?    Tolerable  well,  I  thank  you. 

8.  Neither  the  man  with  the  big  nose  nor  the  one  with  the  email  head 

were  elected. 

9.  I  could  write  an  essay  a  great  deal  easier  than  I  could  build  a  house. 

10.  That  man  never  went  to  no  college. 

11.  Who  did  you  get  your  advice  from? 

12.  I  only  wish  I  had  have  went. 

13.  Will  I  help  you  to  some  fruit  ? 

14.  If  we  had  only  have  gone  to  the  opera. 

15.  If  I  had  not  have  loaned  him  the  money. 

16.  The  reason  of  us  going  there  was  well  known. 

17.  Don't  go  there  of  a  Monday  if  you  wish  to  see  the  pictures  to  an 

advantage. 

18.  That  shouldn't  make  the  least  bit  of  difference. 

19.  Anyway  there  want  no  great  sight  to  spare. 

20.  Less  you  and  I  go  if  they  aint  another  one. 


1    ',  BL'S/ySSS     COBRES1 


PUNCTUATION  AND  THE  USE  OF  CAPITALS.    (gn 

[  111.-  errors  here  given  in  punctuation  and  tin-  UHC  of  capitals  will  be  such 
Many  intelligent  student  can  correct  Tin-  numt  that  is  Bought  in  the  exer- 
cise is  to  give  force  to  the  import;.  n  in  these  matters.  The  two 
kinds  of  errors  are  given  prumiacuoualy.] 

1  In  what  state  is  situated  lake  Ontario. 

8.  Newyork  ia  an  american  City,  and  so  are  Philadelphia  and  Boston  ; 

8.  the  dominion  of  Canada  is  on  the  northern   Frontier  of  the-  United 
states  of  atuerica. 

4.  address  your  letters  to  j  p  jones,  Now  lirun.-wick,  N.  J. 

5.  Bend  me  a  Copy  of  pick  wick  hound  in  Calf. 

6.  I  expect  to  go  south  in  february  or  nun  eh. 

?.   The  twenty  second  regiment  parades  on  inondny. 

8.  There  was  a  Boy  !  Whose  name  was  job  Hastings; 

9.  thuraday  comes  Between  w  •  .ml  t'riday. 

10.  A  frenchman  likes  Frogs,  hut  not  an  american. 

11.  among  the  Habits  required  for  the  Ktlicicni  prosecution  of  Ilusinessof 
any  Kind  the  Mont  important  are  Those  of  application  .observation  method 
accuracy  and  Deopatch.^here  are  Persons  who  will   Sneer  at  these  Virtues  as 
little  Thing-*, trifles  unworthy  of  their  Notice  hut  it  must  he  Kememliered  that 
Human  I. if«- is  made  up  of  Trifles  and  that  OH  the  Pence  make  tin-   Pounds 
and  the  Minutes  the  Hoars  so  it  is  the  repetition  of  Things  severally  Insigni 
Scant  that  make  tip  Human  Character. 

1J  Is  \vutts  the  Author  of  how  dotli  the  little  Busy  Bee  improve  each 
Shining  Hour  and  gather  Honey  nil  the  Day  from  every  Opening  Flour. 

1.;.  An  eminent  Writer  says  "  talent  knows  what  to  do  tact  knows  hoir 
to  do  it." 

14.  The  mandates  of  god  must  be  obeyed. 

15.  o  balmy  spring  o  day  of  dear  delights. 

16.  The  ways  of  providence  are  concealed  from  Man. 


STYLE.     (§1G7.) 

[The  few  examples  of  faulty  style  given  here  are  for  the  -indent  to  cor- 
rect in  his  own  way.  Therein  no  attempt  to  r.i\e  prevalent  faults,  and  no 
pretence  of  instruction;  but  simply  an  opjwrt unity  atlord'-d  for  wholesome 
practice.  ]  sled  to  reconstruct  the  sentences  to  suit  him- 

•elf,  but  to  preserve  as  well  as  he  can  the  evident  inti  nt  of  tin-  \\rin T  ] 

1     I  should  admire  to  -o  into  the  country,  if  I  wasn't  afeared  of  snakes. 
.'    What  is  a  small  brittle  of  beer  among  two  of  us 

8.  You  might  argufy  that  question  for  a  solid  month  without  changing 
anybody's  notions. 

4.  Where  are  you  going  at  ? 


BUSINESS     CORRESPONDENCE.  107 

5.  She  is  ruther  small  like,  with  a  fresh  good  looking  phiz,  blue  eyes 
and  brown  hair,  sorter  frizzed,  and  talks  like  a  locomotive  ;   but  she  is  n't 
a  bit  pedantic  or  blue  stokin'fied. 

6.  I  come  across  an  awful  swell,  just  too  mashy  for  anything ;  but  his 
close  was  dreadful  dusty,  and  he  had  one  squinty  eye  and  a  turn  up  nose, 
and  a  kind  of  jerky  walk. 

7.  If  I  was  as  well  posted  up  in  finance  as  he  is,  I  would  ,tate  an  occa- 
sional shy  at  the  stock  market. 

8.  There  is  no  use  flying  off  the  handle  about  a  little  matter  like  this. 
Better  hold  your  hnrses,  and  not  go  off  half-cocked. 

9.  'Tisu't  worth  while  making  a  fuss,  till  you-know  how  you're  coming 
out.     They're  no  great  shakes,  anyhow. 

10.  Reduce  the  following  letter  to  its  proper  limits ;  omitting  no  essential 
point  and  using  no  unnecessary  words  : 

PROVIDENCE,  R.  I.,  September  1,  1884. 
To  Messrs.  GEORGE  P.  OPDYKE  &  Co.,  New  York : 

Gentlemen — Sirs :  It  is  with  feelings  of  profound  and  all-absorbing,  as 
well  as  of  heartfelt  and  undisguised  chagrin,  regret,  and  mortification,  that  1 
now  take  up  my  unwilling  pen  to  indite  for  your  candid,  and,  1  trust,  friendly 
perusal,  these  few,  brief,  but  portentous  lines.  I  know  not  how  you  will  re- 
ceive what  I  have  to  say,  or  what  you  will  think  when  you  shall  have  perused 
these  lines  from  the  beginning  to  the  end  ;  but  I  do  sincerely  hope  and  trust 
that  you  will  not  attribute  to  my  actions  in  the  premises  anything  but  the 
best  and  purest  motives.  I  may  have  erred  in  judgment,  as  who  of  us  all  does 
not,  sometimes  ?  hut  I  can  say,  with  my  hand  upon  my  heart,  and  in  full  con 
sciousness  of  the  responsibility  of  my  words,  that  I  have  wished  to  wrong  no 
man  ;  and  especially  would  I  desire  not  to  wrong,  by  either  word  or  deed, 
those  who  have  ever  been  to  me  such  true,  honest,  and  faithful  friends  as 
you  have  been. 

The  fact  is,  and  I  may  as  well  state  it  without  circumlocution  or  evasion, 
my  business  affairs  are  getting  into  such  a  shape  that  I  am  very  fearful, 
unless  something  is  done  to  avert  it,  that  I  shall  be  obliged  to  suspend  before 
many  months.  I  wish  it  were  not  so :  but  I  can  see  no  way  out  of  it  at 
present.  I  trust  you  will  look  at  the  matter  in  as  lenient  a  light  as  possible, 
and  let  me  know  Avhat  you  would  do  if  you  were  in  my  place. 

Very  truly,  yours, 

JAMES  SLOW  COACH. 


11.  Give  the  proper  expansion  to  the  following : 

NEW  YORK,  Oct.  1?,  1S84. 
SAM: 

Here  all  right.  Rail  to  Albany  ;  boat  to  New  York.  Dusty  road  ; 
sleepless  night.  '  River  better.  Found  Charley  at  landing.  Put  up  St.  Denis 
Hotel.  Get  around  to-morrow,  hope.  Big  city;  lots  of  people;  immense 
buildings ;  great  hubbub.  Theatre  to-night,  expect.  Tell  you  about  it 

to-morrow.  Lots  of  love, 

By,  bye, 

JOHN. 


101  BUS/XSSS     <  KffCM. 

BRIEFING.    ($172.) 

[The  following  example  will  indicate  the  purpose  of  these  exercise*. 
Beyond  this  the  student  should  practit  <•  l-n.-tintf  his  own  l.-in-rs  us  he  files 
them.] 

/.    Letter  from  Author's  Friend  to  Publisher. 

CHICAOO,  July  10,  1884. 
Mean*.  D.  APPI.ETOS  &  Co  . 
New  York. 

Gentlemen  :  I  write  to  inquire  if  you  care  to  exam 

ine  the  MS.  of  a  book  on  European  Travel.  It  is  from  the  pen  of  a  facile 
writer,  who  is  a  keen  observer,  and  is  never  dull.  He  is  also  an  artist,  and 
can  famish  complete  sketches  for  the  engraver.  I  know  that  there  is  no 
dearth  of  books  of  travel,  but  I  also  feel  sure  that  there  is  a  place  for  this 
one  more ;  and  a?  I  am  a  friend  of  the  author,  as  also  of  your  house,  I  toko 
this  means  of  bringing  you  together.  If  you  desire  to  look  at  the  manu- 
script I  will  send  it  to  you  at  once ;  trusting  that  it  may  not  be  necessary  for 
you  to  detain  it  long  hi  case  you  do  not  wish  to  publish  it, 
I  am  with  respect. 

Tours  truly, 

ROBEIIT  LINCOLN. 

BRIEF  OF  ABOVE  LETTER. 

From  Robert  Lincoln,  Chicago,  July  10,  offering  MS.  of  Book  of  European 
Travel.  Sketches  by  author.  Received  July  12 ;  Ans'd  July  15. 


2.   Reply.    Prom  Publisher  to  Author's  Friend. 

NEW  YOHK,  July  15,  1884. 
Dear  Sir  : 

Yours  of  the  10th  at  hand.  You  are  right  in  saying  that  tin-re  is 
oo  dearth  of  books  of  travel ;  and  you  are  also  right  in  your  infer.-nce  thiit 
there  is  always  room  for  a  readable  book.  We  shall  be  glad  to  look  at  ih< 
MS.  and  the  sketches  of  your  friend,  and  will  give  you  an  answer  as  soon  as 
ire  can  conveniently  do  so. 

With  thanks  for  your  courtesy  we  remain, 

Yours  sincerely, 

I).    Ari-M.TON  &  CO. 

BOMEBT  LINCOLN,  ESQ.  ) 
Chicago.         i 

[To  be  briefed  by  the  student.] 


BUSINESS     CORRESPONDENCE.  109 

3.   Letter  from  Author  to  Publisher. 

CHICAGO,  July  20, 1884, 
D.  APPLETON  &  Co.,) 

New  York.       i 

Gentlemen :  Mr.  Lincoln  informs  me  that  you  are  willing  to  look  at 
my  MS.,  and  at  his  suggestion  I  send  it  you  herewith.  I  may  be  wrong  in 
the  estimate  I  put  upon  my  own  work,  but  I  am  confident  that  the  leading 
idea  which  I  have  developed  will  place  the  book  beyond  the  contingency  of 
mere  literary  excellence.  In  other  words,  I  feel  sure  that  there  is  a  positive 
and  remunerative  demand  for  the  kind  of  information  which  the  book  will 
contain,  and  in  regard  to  which  it  will  stand  quite  alone  among  books  of 
travel.  As  you  are  the  judges  from  your  own  point  of  view  as  to  what  a 
book  should  be  in  order  to  sell,  I  leave  you  to  discover  from  the  MS.  what  I 
have  called  my  "leading  idea."  The  sketches,  with  the  exception  of  two 
which  I  offer  as  a  sample  of  my  finished  work,  are  in  the  rough,  and  are. 
with  the  MS.,  submitted  for  your  judgment. 

Yours  sincerely, 

H.  D.  NICHOLS. 


4.   Letter  from  Publishers  to  Author 

NEW  YORK,  August  1,  1884. 
H.  D.  NICHOLS,  ESQ.,) 
Chicago.         ' 

Dear  Sir :  We  have  done  your  manuscript  the  unusual 
service  of  a  prompt  perusal,  and  must  say  that  it  bears  upon  its  face  the 
assurance  of  success.  The  "  leading  idea  "  we  have  caught,  and  it  is  a  good 
one.  Your  sketches  are  graphic  and  suggestive.  We  think  that,  without 
doubt,  such  a  book  as  you  propose  would  "take"  —  possibly  it  might  meet 
with  an  exceptional  sale.  At  all  events  we  are  ready  to  negotiate  with  you 
for  its  publication.  In  case  we  should  publish  it,  however,  there  are  a  few 
suggestions  we  would  like  to  submit  to  you,  touching  our  mutual  interest. 
How  soon  could  you  place  in  our  hands  the  MS.  and  sketches  complete  ; 
and  what  have  you  to  say  as  to  terms  ? 

Yours  truly, 

D.  APPLETON  &  Co. 


110  BU8IJftaa     CORtt£S  ' '"  \  l>  KNCM. 

5.    Letter  from  Author  to  Publisher. 

(  UK  AGO,  Aitguit  5,  ISSj. 

I  am  gratified  with  your  courteous  favor  of  Aug.  1,  and  hasten 
to  reply.  I  do  not  underrate  tin-  advantages  to  a  comparatively  unknown 
author  of  securing  for  his  first  real  venture  such  eminent  8ponBore  ;  and  I  am 
prepared  to  accept  your  terms  of  publication,  feeling  assured  tlmt  they  will 
be  as  favorable  as  I  could  get  elsewhere.  I  shall  be  glad  to  receive  imy 
suggestions  from  you  touching  any  part  of  the  work.  The  MS.  can  be  com- 
pleted within  two  weeks,  and  I  will  tini-li  the  sketches  as  rapidly  as  possible. 
I  do  not  doubt  that  1  can  place  all  the  material  in  your  hand*  by  the  first  of 

October  next. 

I  am,  with  kind  consideration, 

Tours  very  truly, 

H.  D.  NICHOM. 
D.  APPLE-TON  &  Co.,) 

York.      } 


GENERAL  LETTERS. 
1.  LETTERS  OF  INTRODUCTION. 

[A  Ix'tter  of  Introduction  is  for  the  purjMwe  of  making  two  persons,  who 
before  were  strangers,  acquainted  with  each  other.  The  person  writing  tin- 
letter  is  a  mutual  acquaintance,  and  in  bringing  his  two  friend-  t..  «  :ln  r  he 
is  presumed  to  seek  their  mutual  good.  A  letter  of  introduction  may  be  a 
mere  act  of  courtesy  with  no  purpose  beyond,  or  it  may  be  in  the  interest  of 
the  one  on  whose  account  it  is  written.  In  either  case  it  l>ehi>oves  the  writer 
to  be  frank  and  truthful.  Such  n  letter  should  not  be  written  under  mental 
protest,  covering  an  unexpressed  doubt  as  to  its  propriety  or  its  ] 
truthfulness.  It  should  never  be  written  tinder  a  pressure,  nr  to  p  t  rid  of 
importunity,  although  it  is  not  essential  that  the  writer  should  lie  n  warm 
partisan  of  the  person  whom  he  introduces.  The  most  that  can  be  required 
of  him  is  that  he  rpenk  the  truth.] 

8TATKM! 

Exercise.— Tour  friend,  J.  C.  Sproull,  is  to  start  on  a  pleasure  tour  to 
the  Pacific  Coast.  Ton  have  a  friend  in  San  Francisco,  who  is  an  old  time 
resident,  and  thinking  he  may  be  of  service  to  Mr.  Sproull  you  write  him  in 
advance,  sending  the  1-  ;».  r  by  mail,  and  stating  therein  that  so  to 

giT«  Mr.  8.  a  letter  of  introduction  to  him.     Afterwards  you  write  the  1 
of  introduction,  which  you  hand  to  Mr.  Sproull  to  present  in  person. 


BUSINESS     CORRESPONDENCE.  Ill 

MODEL    1.     (Sent  by  mail.) 

NEW  YORK,  April  15, 1884. 
R.  L.  SHAINWALD,  Esq.,) 
San  Francisco.     ) 

My  dear  Friend  : 

Mr.  J.  C.  Sproull  of  this  city,  whom  I 

have  known  for  a  number  of  years,  will  soon  leave  for  San  Francisco  by  the 
overland  route.  I  have  given  him  a  letter  of  introduction  to  you,  feeling  that 
what  you  can  do  for  him  to  make  his  stay  in  your  city  pleasant  and  profitable 
you  will  do.  Mr.  Sproull  is  a  man  of  excellent  connections,  and  in  certain 
directions  of  excellent  attainments.  He  was  graduated  from  Columbia  some 
five  years  ago,  and  has  been  giving  his  attention  since  to  the  study  of  min- 
eralogy, in  which  line  he  has  attained  to  some  distinction  here.  He  thinks 
there  is  a  wider  field  for  him  on  the  Pacific  Coast,  and  his  friends  encourage 
him  to  make  the  venture.  I  know  how  busy  you  are,  and  how  many  interests 
claim  your  attention,  but  I  have  thought  you  might,  without  much  incon- 
venience, put  our  friend  in  the  way  of  making  the  right  connections  at  the 
start.  This  would  be  doing  a  great  service,  and  I  know  would  not  only  be 
properly  apj^eciated  by  Mr.  Sproull  and  his  friends,  but  would  be  availed  of 

with  discretion. 

Yours  as  ever, 

JOHN  R.  PGNN. 


MODEL    2 .      (Given  in  person.) 

Esc 

San  Francisco. 


R.  L.  SHAINWALD,  ESQ.,  ) 
;isco.      } 


My  dear  Friend : 

The  bearer,  Mr.  J.  C.  Sproull,  visits  your 

city  with  a  view  to  locating  there.  He  is  a  graduate  of  Columbia — of  the 
School  of  Arts  and  of  the  School  of  Mines,  and  has  attained  to  some  promi- 
nence here  as  a  mineralogist.  He  hopes  to  put  his  knowledge  to  practical 
use  in  California,  and  goes  there  with  that  intent.  Any  favor  which  you  may 
be  able  to  extend  to  him  will  be  duly  appreciated  by  him,  as  also  by 

Your  sincere  friend, 

JOHN  R.  PENN. 


115  BU8IXX88    CORK  ESP  OXDBtTCM. 

Exercise  1.— {To  be  written  by  tin-  .student.)-  Mr  Sh:  inwald  responds  to 
the  first  of  the  above  Inters  on  dato  of  April  25,  saying  that  he  will  U> 
pleased  to  see  Mr.  Spr.tull  and  take  great  pleasure  in  adwinring  hi*  interests. 
He  also  says  there  are  excellent  openings  for  good  minerulogwt*,  and  that  he 
knows  of  a  new  enterprise  among  hi*  own  personal  friends  wherein  ill.- 
services  of  a  scientific  man  are  much  M.  .  <l.  d 

Exercise  1— J.  E.  Soule  of  Philadelphia,  under  date  of  Jan.  1,  1885, 
writes  a  letter  of  introduction  to  H.  ('.  Spencer.  Milwaukee.  <.n  In-half  of 
John  Miles,  a  young  man  wl>..m  he  knows,  ami  <>f  whom  he  can  8|>eak  in  the 
highest  terms  as  an  accountant  and  a  man  of  bunnies*  instincts.  Mr.  Miles 
goes  to  Milwaukee  to  fill  a  position  as  receiving  teller  in  a  hunk,  and  the 
letter  commends  him  to  Mr.  Spencer's  good  graces,  and  aims  to  promote  a 
mutual  acquaintanceship. 

"Exercise  3.— The  letter  is  writtc-n  by  8.  R.  Eaton  of  Toronto,  Canada, 
under  date  of  July  12,  1885,  and  introduces  the  bearer.  Mr.  John  Gibson,  to 
Mr.  8.  8.  Packard  of  New  York.  Mr.  Gibson  is  an  associate  in  business  of 
Mr.  Eaton's,  and  visits  New  York  for  the  first  time  with  u  view  to  n-cn -ation 
and  business.  The  object  of  the  letter  is  to  give  to  the  bearer  -!..•  benefit  of 
an  acquaintance  with  Mr.  Packard,  who  is  kindly  requested  to  extend  to  him 
the  proper  courtesies. 

Exercise  1— The  letter  is  from  H.  E.  Hibbard  of  Boston,  under  date  of 
April  10,  1884,  and  introduces  the  bearer  Wra.  Allen  Miller  to  Mr.  Henry 
Gillig,  manager  of  the  "  American  Exchange  in  Europe,"  449  Strand,  Ix>ndon, 
commending  the  bearer  to  Mr.  Gillig's  kind  services.  Mr.  Miller  p>es  abroad 
in  the  interest  of  a  new  machine  which  he  has  invented  for  fastening  buttons 
on  clothing,  gloves,  shoes,  etc.  He  wishes  to  procure  patents  in  the  Tinted 
Kingdom  and  the  continental  countries,  and  Mr.  Gillig  is  asked  to  give  him 
what  advice  and  aid  he  can. 

Exercise  5. — The  letter  is  from  E.  R.  Felton  of  Cleveland,  under  date  of 
June  12,  1880,  and  introduces  Mr.  Edward  Miles  of  Cleveland  to  "  whom  it 
may  concern."  Mr.  Miles  has  just  finished  a  course  of  commercial  study 
nnder  Mr.  Felton,  and  is  a  proficient  in  accountantship  and  general  literature. 
His  special  qualifications  lie  in  the  direction  of  corresi>ond«-nce,  lie  being  a 
proficient  in  the  art  of  phonography;  but  he  ie,  besides,  an  unusually  good 
penman,  and  a  thorough  English  scholar. 


2.    ORDERING   GOODS. 

Exercise  6. — Letter  wri-irn  l>y  Bi>:elo\v  k  Co  .  Boston,  under  date  of  Apr. 
12,  1886,  ordering  from  Earl  \  Wilson.  New  York.  HHM)  do/en  assorted 
Collars  and  800  dozen  assort.-!  <  'ufTs,  the  same  to  be  sent  by  rail  as  f r 

Exercise  7.— Letter  from  H.  H.  Bryant,  Chicago,  dated  June  10,  1886, 
ordering  from  D.  Appleton  &  Co.,  New  York,  50  copies  Bryant  &  Stmtton 
Commercial  Law,  10  copies  B.  &.  8.  Interest  Tables,  and  6  copies  Williams  & 


BUSINESS     CORRESPONDENCE.  113 

Packard's  Gems  of  Penmanship,  the  same  to  be  sent  to  Ivison,  Blakeman, 
Taylor  &  Co.,  753  Broadway,  to  be  forwarded  by  them  together  with  other 
books  ordered  direct. 

Exercise  8. — Letter  from  same  person  and  of  same  date  as  above,  ad 
dressed  to  Ivison,  Blakeman,  Taylor  &  Co.,  ordering  50  copies  Bryant  & 
Stratton  Book-keeping,  to  be  sent  in  same  package  with  books  to  be  delivered 
them  by  D.  Appleton  &  Co. 

Exercise  9. — Letter  from  Stern  Brothers,  St.  Louis,  of  date  Feb.  10, 
1887,  to  Brown  &  Wilson,  New  York,  ordering  a  complete  line  of  English 
Tweed  goods,  as  per  last  order,  and  requesting  them  to  draw  at  30  ds.  for 
amount  of  bill. 


3.    ADVISING   OF   SHIPMENTS. 

Esercise  10.— Letter  from  J.  C.  Bryant,  Buffalo,  dated  Mar.  10,  1884, 
addressed  to  M.  R.  Halladay,  New  York,  advising  of  the  shipment  of  500  brls. 
New  Process  Flour,  as  per  order  of  the  1st.  State  that  the  delay  of  a  few 
days  in  executing  the  order  was  occasioned  by  a  well-founded  rumor  that 
railroad  freights  were  to  be  reduced.  The  fact  of  the  reduction,  it  is  hoped, 
will  justify  the  delay. 

Exercise  11.— Letter  from  W.  H.  Sadler,  Baltimore,  dated  Jan.  10,  1887, 
addressed  to  Williams  &  Rogers,  Rochester,  advising  of  the  shipment  by 
express  of  100  copies  Sadler's  Counting-House  Arithmetic.  State  that  owing 
to  unusual  demands,  the  last  edition  has  been  absorbed  more  quickly  than 
was  anticipated,  which  must  account  for  the  delay  in  filling  the  order. 

Exercise  12. — Letter  from  C.  C.  Curtiss,  Minneapolis,  of  Mar.  10,  1885, 
to  B.  Horton,  New  York,  advising  of  the  shipment  of  500  brls.  Choice  Family 
Flour  to  be  sold  on  account  of  the  shipper.  The  consignee  is  requested  to 
use  his  own  judgment  as  to  sales,  but  not  to  hold  after  April  1,  except  on  the 
best  assurances  of  an  advance. 


4.    MISCELLANEOUS. 

Exercise  13. — Answer  the  following  advertisement : 

T3OOKKEEPER  AND  GENERAL.  MANAGER  WANTED.-AN  ACCOMPLISHED  BOOKKEEPER 

JJand  practical  business  man  is  desired  to  take  charge  of  tlii^  business  of  n  lumber  company  in  Qeorafak 
He  must  be  a  man  of  experience,  must  have  some  knowledge  of  the  lumber  business,  and  undoubted  skill  as 
an  accountant.     A  liberal  salary  will  be  paid  to  the  riicht  man,  ami  it  will  !«.•  wholly  BMteM  for  any  persoi 
to  apply  who  cannot  irive  the  best  assurances  of  being  the  right  man.    Address,  for  three  days, 
JDate  of  Adv.,  Apr.  10,  1884.J  J.  M.  B.,  Herald  Office 

Exercise  14. — The  party  to  whose  advertisement,  as  above,  you  responded, 
writes  you  that  in  the  main  your  testimonials  are  satisfactory,  but  that  the 
parties  in  interest  require  surety  to  the  amount  of  $10000.  You  are  asked  if 
you  can  furnish  such  surety,  and  if  you  are  prepared  to  enter  upon  /our 


114  BL'SiyfSS     CORREX  r  <>  \  l>  KNCM. 

duties  nt  one  •.  You  reply  iliat  xmi  do  n.it  think  you  \\\\\  have  any  dilliculty 
in  getting  Mtn-ty.  Inn  that  y.uir  arrangements  arc  mich  tliat  you  cannot  •  nicr 
upon  your  duties  before  tin-  l»>riiinin^  «f  Ma\.  Vou  alr-o  Mipuiaie  in  aildi 
tion  to  th«  salary  offered,  the  payment  of  your  traveling  expenses  to  the 
MUM  of  operations.  Write  both  letters. 


15.  —  You  are  a  clerk  in  the  house  of  James  MeUrath  &  Co., 
importers  of  Woolens.  Tou  arc  about  to  enter  U|M>II  your  second  year,  having 
during  the  past  year  served.  at*  you  think,  faithfully,  and  on  a  email  salary. 
U  nte  to  tin*  finn,  asking.  in  a  respectful  way  what  rate  of  wages  you  may 
expect  for  the  year  to  come,  and  what  advancements  as  to  |>ositi<in. 


Exerdse  16.—  Under  date  of  New  York,  Sept  1.'  1^1.  wri'e  to  .Tames 
Bishop  of  Chicago,  who  is  an  old  friend  of  your  family  and  a  long-time 

1  hicago,  asking  him  what,  in  his  l>rst  judgment.  an-  tin-  chances  m 
thai  city  for  a  young  lawyer  (viz.:  yourself)  who  has  graduated  with  tin- 
highest  honors,  has  practiced  a  year  in  New  York  with  fair  success,  and  who 
is  not  afraid  of  hard  work. 

Exercise  17.  —  Answer  the  above  letter  as  from  James  Bishop  to  your>.-lf. 
under  date  of  Sept.  10,  saying  that  Chicago  is  a  dty  of  ]>ossiliilities  in  every 

of  creditable  enterprise  ;  that  there  arc  plenty  of  mi-rrhants  nn<)  profes- 
sional  men  —  good,  bad,  and  middling,  and  that  those  who  really  deserve  success 
achieve  it.  Say  that  in  no  profession  is  there  a  better  chance  to  ri.-e  than  in 
that  of  the  law  ;  but  emim  ncr  can  be  reached  only  by  genuine  attaint 
and  unremitting  labor.  Say  also  that  the  writer  will  IN*  ^lad  to  w<  Iconic  the 
son  of  his  old  friend,  and  will  do  him  ull  tin-  service  within  his  power. 

Exercise  18.  —  You  reside  in  Milwaukee,  and  Charles  Moran  &  Br«>.  in 
York.     Write  a  letter  as  from  Moran  &  Bro.,  under  date  of  July  I 
yourself,  inquiring  as  to  the  financial  standing  of  J.  Thorhurn  of  Chicago, 
who  has  referred  to  you  in  soliciting  a  consignment  of  goods  on  commission. 

Exercise  19.  —  Write  a  letter  in  your  own  name,  dati-d  Milwaukee,  July  n, 
in  reply  to  above.  Say  that  yon  have  known  Mr.  Thor'mrn  tor  a  &xx\  many 
years  ;  have  had  extensive  dealings  with  him,  and  have  always  found  him 
prompt  and  efficient  in  all  ways. 

Exercise  20.  —  Write  a  letter,  dated  at  Boston,  to  your  friend  J.  T.  Cog- 
geshall  at  Columbus,  Ohio,  informing  him  of  your  arrival  in  Boston,  and  your 
first  week's  experience  in  your  new  ]x*<ition  You  are  engaged  as  assistant 
book-keeper  for  Jordan,  Marsh  &  Co.  You  find  jour  employers  excellent 
men,  and  your  associates  in  all  ways  to  your  liking.  Speak  of  your  in. 
sions  of  Boston  as  a  city,  and  of  anything  which  strikes  you  as  new  and 

;•   •     ••  -'    h_- 


21.—  Y  in  Philadelphia.     Your  friend  James  San  ford 

lives  in  San  Francisco.  You  think  you  would  like  to  go  to  San  P'rancinco,  or 
to  some  other  California  city,  for  a  permanent  stay.  You  arc  a  practical 
book-keeper  with  a  cash  capital  of  $10000.  Your  idea  is  to  find  a  good,  safe 


BUSINESS     CORRESPONDENCE.  115 

investment  for  your  money,  and.  a  good  clerical  position  for  yourself  until  you 
have  a  chance  to  know  the  country.  Write  your  friend,  asking  his  advice 
and  requesting  from  him  general  information  about  the  country  and  the 
prospects  for  business. 

Esercise  22. — Write  an  answer  to  the  above,  as  from  Mr.  Sanford.  Say 
that  matters  in  California  are  in  a  transition  state,  but  that  the  cities  are 
holding  their  own,  and  that  in  San  Francisco,  especially,  the  improvements 
that  are  going  forward  speak  well  for  the  financial  condition,  and  for  the 
courage  of  the  people.  Say  that  there  are  always  good  openings  for  invest- 
ments ;  that  money  is  in  active  demand  on  good  securities,  and  that  expe- 
rienced accountants  are  also  in  demand.  The  writer  is  pleased  to  know  that 
you  contemplate  coming  West,  and  promises  to  do  all  in  his  power  to  secure 
your  permanent  stay  in  California. 

Exercise  23. — You  are  a  member  of  a  firm  doing  business  in  New  York. 
You  are  not  quite  satisfied  with  the  relations  existing  between  yourself  and 
your  partners,  James  Meredith  and  Robert  Smith  ;  and  you  write  them,  saying, 
in  general  terms,  that  you  are  convinced  that  it  would  be  better  for  all  parties 
to  dissolve  the  copartnership.  Express  the  high,  regard  you  feel  for  your 
associates,  and  your  desire  for  their  prosperity,  placing  the  grounds  of  your 
proposal  upon  the  fact  of  your  declining  health  and  conflicting  ideas  as  to 
the  policy  of  conducting  the  business.  Ask  them  to  appoint  a  time  for  a 
conference. 

Esercise  24. — Write  an  answer  to  the  above  as  from  your  partners  con- 
jointly to  yourself.  Express  the  sincere  regret  they  feel  at  your  decision,  and 
say  that  the  writers  cannot  see  any  necessity  for  the  step.  You  have  been 
together  as  partners  for  a  good  many  years  ;  the  business  has  been  prosperous 
and  is  growing  more  so.  They  recognize  the  fact  of  your  poor  health,  which 
they  attribute  to  overwork ;  and  they  suggest  a  leave  of  absence  and  rest. 
However,  they  will  be  pleased  to  meet  you  in  conference,  and  suggest  any 
evening  of  the  present  week  which  may  suit  your  convenience. 

Esercise  25. — You  are  the  manager  of  a  business.  One  of  your  clerks, 
in  whom  you  had  the  utmost  confidence,  has  been  guilty  of  a  misdemeanor. 
The  knowledge  has  come  to  you  indirectly  but  authentically,  and  you  are 
satisfied  that  the  act  was  unpremeditated  and  that  it  is  the  first  offence  of  the 
kind.  Address  a  letter  to  the  young  man,  informing  him  of  your  knowledge 
of  the  facts,  and  giving  him  such  counsel  as  the  ciicumstances  seem  to 
require. 

Esercise  26. — You  are  a  clerk  in  a  city  establishment.  One  of  your  asso- 
ciates seems  to  have  done  you  a  great  injury  in  misstating  facts  against  your 
character.  Write  him,  asking  an  explanation  of  his  conduct  and  demanding 
of  him  a  full  reparation  of  the  wrong. 

Esercise  27. — Write  a  reply  to  the  above  as  from  your  friend  to  yourself. 
Deny  in  positive  terms  the  allegations  made  by  you,  and  ask  for  your 
authority. 


118  BUSINESS     CORRESPO  .\  l>  r  \  <'E. 

£xtrdM  38. — A  second  letter  from  younrlf  t  .  your  supposed  mn 

lain  tin-  mime  of  your  infiiniinnt.  who  ha*  authorized  \mi  to  tin  ?•>,  and 
oak  for  a  mutual  conference  in  the  matter. 

EXtfCiS6  29. — Tho  mutiml  conference  having  l»een  held,  and  it  appearing 
that  your  informant  had  quite  iniMiinderxtood  th>>  remark*  of  ymir  n->» 

"ill  write  him  a  letter,  expressing  your  gratification  at  tin-  n-sult,  ami 
•Muring  him  of"  your  appre.-iution  ,,t  hi-  manly  i-ojiduct  and  his  friendship. 

Exercise  30.--V  m.  n  Buffalo,  have  drawn  a  drnft  for  $1000  on 

hi  SODS  of  Detroit.  \\h.  re  \«n  have  a  largo  balance  to  your  credit.  The 
draft  comes  to  you  through  your  hank  protente*!  f.>r  IKHI  puymeiit.  \\' rite  to 
the  drawee*, expressing  your  surprint;  and  asking  for  an  explanation. 

Zser:ise  31. — Smith  &  Sons  write  you  that  the  hlunder  above  Indicated 
came  tlirou^h  the  Mtijiitlity  of  a  clerk,  who  wan  in  charge?  of  matters  when 
the  draft  waa  presented.  They  express  great  clm-rrin  at  the  oo-urren.-e,  and 
have  discharged  the  clerk  for  his  obtuseneas.  Produce  this  It  ; 

Exercise  32. — Respond  to  the  following  advertisement,  i  fT>  ring  a  choice 
of  houses  of  which  you  have  the  agency  : 

^\'ANTKI>. — To  purchase  or  rent,  for  one  year  or  more,  n  first-elaxs  dwellinjr- 

hoow.  -uit»l>lc  for  a  tkniilr  of  five  adult*.    Location  )><-tu<-cii  5ih  .n.c!  7t!,-:, 
ttd  and  40tb-»b>.     Neigbboriraoa  mu-i   !>••  anezcepdonable.     Prlrc,  for  pure 
exceed  §40,000 ;  fur  rent,  not  to  exceed  $2,500.    Addreu,  J.  If .,  Tribune  Ofllcv,  for  four  days. 


5.    ClKCULARS,   ADVrERTISKMKNTS,    AND    TELEGRAMS. 


[A  part  of  the  literature  of  business  consists  of  circulnrs, 
and  telegrams,  all  of  which  require  nkill  in  the  preparation.     The  following 
exercises  will  afford  a  little*  practice  in  these  directions.] 

Zzerdss  33.  —  Yon  are  the  proprietor  of  a  Wholesale  Cloth  House,  which 
is  located  at  410  Broadway,  New  York.     You  an-  alxwt   to  n  more 

commodious  quarters  at  815  Church  Street,  where  you  have  i  nct.-.l  a  new 
l>uildim?  exactly  suited  to  your  pur|**«>.     Pre|«re  a  circular  to  l>e  sent  to 
customer*,  apprising  them  of  the  change  and  your  reasons  for  it,  and 
invite  them  tr>  visit  you  in  your  new  quarters. 


Exercise  31.  —  Ton  have  been  engaged  in  the  Wholesale  Dry  Goods 
under  the  firm  style  of  Stuart,  Belden  &  Co.     Mr.  Belden  has  retind 

from  the  concern,  and  in  his  place  you  have  taken  in  two  clerks,  named 

Robert  Hart  and  Thomas  Hicks  :  the  style  of  •  Bl  mrt.  Hurt 

ks.    Prepare  a  circular  to  be  sent  to  your 

notifying  them  of  the  change,  and  soliciting  a  continuance  of  favor  to  the 

new  firm. 


BUSINESS     CORRESPONDENCE.  117 

Exercise  35. — You  have  obtained  a  patent  on  a  very  desirable  labor- 
saving  instrument,  which  you  call  the  "  Combined  Double-action  Mower  and 
Reaper."  Prepare  an  attractive  circular,  describing  its  good  qualities,  and 
its  superiority  over  all  other  instruments  for  the  same  purpose.  Add  to  your 
own  description  and  commendation  the  certificates  of  three  or  four  reliable 
farmers  who  have  used  your  Combined  Double-action  Mower  and  Reaper,  and 
who  do  not  hesitate  to  say  it  is  in  all  respects  the  best  machine  for  the  pur- 
pose they  have  ever  seen  or  heard  of. 

Exercise  36. — Owing  to  adverse  circumstances  or  mismanagement,  you 
find,  upon  a  fair  investigation  of  your  affairs,  that  it  will  be  necessary  for 
you  to  go  into  liquidation.  Prepare  a  circular  letter  to  be  addressed  to  your 
creditors,  stating  the  facts,  asking  for  leniency,  and  signifying  your  desire  and 
purpose  to  save  all  from  loss  to  the  utmost  of  your  ability. 

Exercise  37. — Having  compromised  with  your  creditors  some  time  since 
at  50  cents  on  the  dollar,  you  have,  by  prudent  management  and  favorable 
circumstances,  put  yourself  in  condition  to  pay  your  legal  and  moral  obli- 
gations to  the  uttermost  farthing.  Address  a  circular  letter  to  your  creditors, 
thanking  them  for  their  leniency,  and  informing  them,  one  and  all,  that  you 
are  now  prepared  to  pay  them  in  full,  principal  and  interest,  upon  receipt  of 
their  several  statements. 


Exercise  38. — You  are  in  want  of  a  situation  as  accountant  or  general 
clerk  in  a  Wholesale  Establishment.  Prepare  an  advertisement  for  the 
papers,  setting  forth  your  desires. 

Exercise  39. — You  are  in  want  of  a  book-keeper;  one  who  has  had  expe- 
rience in  business,  and  who  can  come  well  recommended.  Prepare  an 
advertisement  for  the  papers  which  shall  secure  you  proper  responses. 

Exercise  40. — You  are  a  Real  Estate  Agent,  and  have  a  number  of  houses 
to  let  and  for  sale.  Write  an  advertisement  for  publication  which  shall  set 
the  matter  before  the  people  in  the  proper  light.  Describe  the  property  as 
specifically  as  possible. 

Exercise  41. — You  are  a  pubisher,  and  you  have  just  brought  out  a  new 
book,  which  you  desire  to  put  into  the  market  in  the  best  way.  Prepare  an 
attractive  advertisement,  with  such  a  display  of  the  contents  of  the  book  as 
will  at  once  catch  the  eye  and  fasten  the  attention. 

Exercise  42. — Put  the  following  matter  into  such  shape  as  will  seem  to 
you  most  attractive  as  an  advertisement  : 

Over  10£  net  earnings.  All  taxes  paid.  Connecticut  Valley  Railroad  First  Mortgage  1% 
Bonds,  free  from  all  taxes  in  Connecticut,  and  free  of  income  tax  everywhere.  Road  I'm  Mud 
and  running,  and  already  earning  expenses,  interest,  and  over  10%  on  its  stock.  Full  paid 
stock  and  a  limited  mortgage.  Price,  95  and  interest.  We  recommend  them  strongly. 
Brown,  Jones  &  Smith,  Bankers,  9  Fine  St.,  New  York. 


L18  BUSINESS     CORRESPONDENCE. 


13. — Make  an  attractive  advertisement  in  arrangement  of  the 
following  matter : 

A.  Moore  £  Co.,  Na  TV  Broadway,  ofltr  for  Mle,  at  the  lowtwt  rsto-.  ttu-ir  wdl- 
gartneoU  of  every  *tylo  and  description.    Al»o, 


DOW  rr*dy  a  auperb  «lock  of  novellle*  la  real  thread  lace  ami  I.laum  point*,  *ackc,  and 
jacket*;  ParU-enbroUarad  Cvhmere  carriage  and  honre  Jackn  -  in  all  our 

oVpmitaMBU  DOW  open,  tor  apring  and  nummer  wear,  In  all  varietle*  of  fancy  dry-good*. 
Abo,  Ml  liaw  ta  aO  Uwvariow  etaplo  d<>|x>rtmenU.  A  large  Mnortmcnt  ..f  India  »nawla 
Jwt  received,  embracing  ft  C*M»  of  vtriprd  IndU  lung  »hawU,  from  $90  to  $950  each ;  UJN-H 
••tar  eqaaraa,  in  all  colon,  from  $75  to  $4SO  each;  black-filled  wjuart-K,  in  new  deoign*  and 
cotortnga,  from  $  I  SO  to  $3900.  AUo,a  full  aMOrtment  ofRanpoore  <'tmdd«H"  r 
btililaa  hoaiery  and  undergarnx  IK-  fur  Kprin);  ami  i>aiumcr  wear.  Kvcryihlng  new,  fre»h. 
aod  of  the  beat  quality.  Mo  charge  fur  ahowlng  good*. 


Eztrdsa  11.  —  Write  a  telegraphic  despatch,  not  exceeding  ten  words,  to 
be  Bent  to  J.  H.  Uoldsmitli,  lVtn>it,  ordering  liiiu  t»  H-IK!  yon  by  express 
8  (MM  of  summer  hats,  and  to  draw  on  you  ut  ten  days'  H;_l.t. 


16.  —  Write  out  a  telegraphic  message  containing  ten  words  or 
leas,  instructing  your  friend  at  New  York  t..  |.r<.<-iin-  fur  you  tirst-class  passage 
tickets  for  Europe,  and  to  notify  you  when  the  steamer  is  to  leave  \> 

Exercise  16.  —  Write  out  a  message  as  compactly  as  possible,  notifying 
your  agent  at  New  York  that  you  have  sent  him  by  railroad  (in.-  thousand 
barrels  flour,  and  that  you  have  drawn  on  him  at  30  days'  ni^lu  for  $3000. 

Exercise  17.  —  You  have  received  the  following  telegram  from  your  j  ;ut 
ner,  who  is  traveling  in  the  West.  (Write  out  an  appropriate  answer.) 

ST.  Louis,  M<»j  in,  1S7S. 
To  J.  W.  MERCHANT,  New  York  : 

Just  arrived.    Find  matters  better  than  expected.    Rom:iin  IP-P-  four 
days  ;  then  to  Chicago.    Shall  I  come  home  directly,  or  go  farther  west? 
28.    Pi  IV  II.  M<> 

Exercise  IS.—  Put  the  following  message  into  the  fewest  words  that  will 
cover  all  the  requirements  : 

NEW  YORK,  October 
H.  R  BHYANT,  Chicago,  10..: 

Dear  Sir:  —  I  see  by  the  paper*  and  telegraphic  despatches  that  \»u  have 
had  an  awful  conflagration  in  Chicago.  1  feel  very  s<«rr\  for  you  and  for  all 
your  suffering  jx-Mjile,  and  will  do  what  I  can  to  relieve  you.  I  have  put  a 
subscription  on  foot,  and  hope  to  be  able  to  send  you  a  quantity  of  e],,thin- 
and  some  money  in  a  very  few  days.  Mean  while,  plea*-  let  me  know  l.y 
letter  what  is  the  condition  of  affairs,  and  how  much  and  in  what  miumer 
you  and  your  family  have  suffered.  Write  soon,  and  |M-IJ.-\  .•  me  t<>  !>•• 

8jrmpathe:ically  yours, 

EAHTBU*. 


APPENDIX. 

80S 

THE  matter  herein  contained,  although  intended  mainly  to 
supplement  the  work  of  the  book  proper,  will  be  found  to  embody 
various  features  not  previously  introduced.  The  additional  busi- 
ness sets  can  be  used  to  advantage  in  connection  with  the  regular 
work,  and  the  forms  of  books  suggested  will  be  found  practical 
and  conforming  to  present  usage;  yet  every  teacher  should  employ 
sucli  forms  as  best  suit  his  purpose,  and  the  models  here  presented 
are  offered  merely  as  suggestions.  The  problems  in  Partnership 
Settlements  will  be  a  welcome  feature,  while  the  Miscellaneous 
Examples  which  follow  will  afford  ample  material  for  final  drill 
in  the  theory  of  accounts. 


Set  IX.— D.  T.  AMES,  L  S.  METCALF,  AND  G.  W.  LATIMER, 
PROPRIETORS. 


Characteristics.— This  set  is  designed  to  illustrate  a  clothing  and  gentlemen's  furnishing 
business.  There  are  three  partners,  who  invest  equally,  and  the  business  ends  with  a  net 
loss,  which  is  equally  divided.  Accrued  interest  on  Bills,  Receivable  and  Payable,  also  dis- 
count on  paper  not  matured  taken  into  account  in  showing  the  condition  of  the  business, 
and  the  final  standing  of  the  partners.  Copartnership  dissolved,  one  partner  retiring  from 
the  firm  by  drawing  out  his  share  of  the  net  capital. 

Accounts  used  in  this  set  (put  two  on  a  page) — D.  T.  Ames  ,  L.  S.  Metcalf  ; 
G.  W.  Latimer  .  Merchandise  ;  Bills  Payable :  Interest ;  Bills  Receiv- 
able ,  L.  L.  Williams  ,  A.  W.  Smith  ;  E.  R.  Felton  ;  A.  C.  Lobeck  ; 
J.  J.  Souder ;  A.  S.  Parish  ;  J.  F.  Mooar  ;  Cash  ;  Expense  ;  Loss  & 
Gain.  

Philadelphia,  September  1,  1884.  D.  T.  Ames,  L.  S.  Metcalf, 
and  G.  W.  Latimer  are  partners,  constituting  the  firm  of  Ames,  Metcalf  &  Co. 
Investments  and  division  of  gains  and  losses  to  be  equal. 

D.  T.  Ames  invests  Cash,  $5OOO  (C.  B.)  -  •  -  L.  S.  Metcalf  invests 
Merchandise,  per  Inventory,  $6795.  The  firm  assumes  for  him  two  notes — 
one,  favor  of  Ira  Mayhew,  dated  July  1,  at  3  months,  with  interest  at  6%. 
Face  of  note,  $75O,  Interest  accumulated  to  date  (2  mos.),  $7*5Oj*  and 

*  The  student,  when  opening  the  books,  should  debit  Interest  account  for  all  resources, 
and  credit  it  for  all  liabilities  of  interest.  See  marginal  notes  on  page  21. 


tto  •  \. 

one,  favor  <>f  T  K  Browne,  dated  Jan.  12.  at  8  month*,  with  int. -rest  at  OJG. 
Face  of  note,  f/OOO  ;   lnu-r»t  ac.-ru.-d  t..  date  ^7.1  moe.).  $3? 
iuvertmeot,  $5()<)O  (J.i  8,  \V.  Utim.-r  inv,-st.->       I'    \\      llmmura's 

note.  Lai  liner's  favor,  dated  June  14,  at  8  months,  with  interest  at  6:?  .    Face 
i«f  note,  #76O;   Interest  to  date  (2  mos.  16  .  \    II    Hinman's 

DOte,  L.'s  favor,  daUtl  July  20.  at  II  month*,  with  inter.  Face  of 

note,  $75O ;  Interest  act-rued  to  date  >1  mo.  ."ids.),  fiji.,18;  also  jM-reoual 
accounts  as  follows  .    L.   I-.   William*.  $5OO;    A.  \V.  Sim; 
E.  H.  Frlton,  $//7O;  A.  C.  Lobeck.  $J26O;  J.  J.  Bonder,  #//O6. 
firm  ajwum.-s  for  him  personal  accounts,  viz.      A.  S.  Parish,  $5OO ;  J.  K. 
M.xiar,   tfSVO.       His   N'.-t    Inv.-Mm.-nt,   $GOOO  (J.).  -  h   for 

postage  stamps,  fi&  (C.  B.)  -  -  -     -  Sold   H.  C    Sp.-n.-.-r.  Mil  wank. •.-.  \\ 
cash.  5  Jtdis..  4  dot.  Shirts,  2d  quality,  @  $12;  »'.  do/.  Inim,  .\,,kti.<.^ 
20  dot.  Linen  Hdkfs.,  (&  $6 ,   3  ITS.  Casahneres,  160  yds.,  @  $1.2*> .    Total, 
t°  •<  »..  C.  H.).  -  ;    11.  T.  Ixwmis.  Cl.-v.-land,  (>..  on  his  note 

at  G  mos..  50  Boys'  Overcoats,  @  $5.50  ;    50  do..  @  $7.50  ;    T..t:,l.  .v 
(S.  B.).  ......  Received  cash  for  petty  sales,  per  P.  C.  B.,  $5&.X~>  (»  .  H. 

•>.  Keceived  of  L.  L.  Williams,  cash  on  %,  $2OO  (C.  B  ).--•- 
A.  &  Parish,  cash  on  %,  $3OO  (C.  B.). 

.;.   > -Id  A.  J.  Uider,  Trenton,  N.  J.,  for  cash,  1   Dr.-s.s  Suit  for  self,  $50; 

1  Overcoat  for  son.  $15;   1  Ix.x  Hdkfs.,  6  do/. ,  <„  $4;  Total.  A' s   H., 

C.  B ). Received  cash  for  petty  sales,  p. -r  1>.  ('.  B.,  -,S%;;(v..W  o 

4.  Paid  cash  for  2  tons  Coal,  @  $5  (C.  B.). 

tf.  Sold   K.  H   F.-lton,  Clevehu»d,  O.,  on  %,  2  pcs.   English  Broadcloth, 

100  yds..  @  $4  :  50  Military  Coats,  per  order,  @  <!10  ;  Total,  .,V .S  IU 

-  Received  cash  for  petty  sales,  per  P.  C.  B.,  #/O ,r>  (C.  B.). 

U.  Paid  cash  for  bill  of  Stationery,  $/5;  Paid  hands  for  shop  work, 
$/50;  Total,  # (C.  B.). 

7.  Sold  C.  G.  Swensberg,  Grand  Rapids,  Mich.,  for  ca>h.  eo  Zouav.-  I'ni- 
fonns,  @  $25  ;  1  i»c.  Striped  Satin.  50  yds.,  ((/)  $."> ,  Di-<  oil  Satin.  .".  ,  .  Total, 
0 ,S.  B.,  <  -  Paid  ca»h  for  invoi.-.-  Cloths,  $&8OO(£.  B.). 

in.   l.  a  v,  ,1  cash  of  A.  C.  Lobeck,  on  %,  $750  (C.  B.)  -  Paid 

cash  for  Gas  bill,  $f5  (C.  B.). 

/?.  C  Lobeck,  New  York,  on  ",  ,  1  lot  ready-made  clothing. 

vl«.:  lOCoata,  @$8:  20  do.,  (/«  $3.50;  50  do.,  at  $5 ;  8  pre.  Pants,  c.  $3; 

:  ...  (ft  $4.  50  Vests,  @  If  i  •• .  .<!'•:  Total, 

^ (S.  B.).  -  ived  cash  for  j*tty  sale*,  ]»-r  P.  C.  B., 

/.;.   Paid  hands  for  shop  work,  cash,  $/?.'•   <     B. 

1  I .  Received  canh  for  petty  sal,  s.  |M  r  P.  <  S,  B..  $/38  (C.  B.). 

15.  Accepted  J.  F.  Mooar*s  draft  at  80  ds.  without  intere-t.  favor  \V.  A 
I    to  Irtil    ",  .  ->%  Sold  C.  C.  Curtiss,Miiin.-a|K.lis.  Minn., 

for  cash.  ~t%  disc..  5  doz.  Cravat*.  @  $0;   8  d<  •/   do..  ../   Alv  .n>n 

-.  <,i  $6;   Total.  ^ (S.  I:  M   L.  L.  Will, 

Rochester.  X.  Y.,  on  H  (privates),  ©  $10;  5  do.  (offi- 


APPENDIX.  121 

@  $15 ;   Total,  $ (S.  B.).  -  -     •  -  Paid  cash  for  our  note,  favor  T.  R. 

Browne,  and  interest.  Face  of  note,  $/OOOj  Interest  to  date  (8  mos.  3  ds.), 
$6O.5O(£.  B.). 

16.  Received  cash  on  %  of  L.  L.  Williams,  $15  O  (C.  B.). 

17.  Received  cash  for  T.  W.  Hannum's  note  and  interest.     Face  of  note, 
$75O ;  Interest  to  date  (3  mos.  3  ds.),  $11.63  (C.  B.). 

IS.  Sold  Wm.  Heron,  Manchester,  N.  H.,  on  his  note  at  6  mos.,  50  Coats 
(ready-made),  @  $5 ;  100  prs.  Pants,  @  $3  ;  50  doz.  Collars,  @  $1.50 ;  5  doz. 

F.  Y.  Shirts,  @  $21 ;  Total,  $- (S.  B.). Received  cash  for  petty 

sales,  per  P.  C.  B.,  $96.83  (C.  B.)  -  -  -  Paid  Clerks'  Salaries  in  cash, 
$112  (C.  B.). 

2O.  Received  of  J.  J.  Souder  his  note  at  60  ds.  to  bal.  %,  •*  (-*). 

-  Sold  Frank  Goodman,  Nashville,  Tenn.,  on  his  acceptance  at  60  ds., 
100  Zouave  Uniforms,  @  $20 ;  50  Military  Coats,  "  Co.  H,"  @  $10 ;  Total, 
$ (S.  B.)  -  -  -  Paid  cash  to  hands  for  shop- work,  $25O  (C.  B). 

22.  Received  cash  on  %  of  E.  R.  Felton,  $1OOO  (C.  B.) Received 

cash  for  petty  sales,  per  P.  C.  B.,  $112.6.4.  (C.  B.). 

25.  Sold  J.   F.   Mooar,  Boston,   Mass.,  on    %,  50   Uniforms,  "Lincoln 

Green,"  @  $25  ;  30  do.  Zouaves,  @  $15  ;  Total,  $ (S.  B.) Received 

of  A.  W.  Smith,  cash  in  full  of  %,  $ (C.  B.) Received  for  petty 

sales,  per  P.  C.  B.,  $83.  75  (C.  B.). Paid  rent  for  September  in  cash, 

$1OO  (C.  B.). 

26.  Received  of  E.  R.  Felton,  cash  on  %,  $17O  (C.  B.) Received 

for  petty  sales,  per  P.  C.  B.,  $58.96-  (C.  B.)  -  -      .  -  Paid  cash  for  Porterage 
and  Drayage,  $35  (C.  B.). 

27.  Received  from  A.  C.  Lobeck,on  %,cash,  $5OO  (C.  B.)  -  -  -  -  Received 
for  petty  sales,  per  P.  C.  B.,  $117. 5O  (C.  B.). 

28.  Sold  C.  P.  Meads,  Syracuse.  N.  Y.,  for  cash,  5%,  disc.,  20  Boys'  Coats 
(ready-made),  @  $5  ;  30  Vests  (ready-made),  @  $1.50  ;   20  doz.  Collars,  @  $1  ; 

Total,  $ (S.  B.,  C.  B.) Received  cash  for  petty  sales,  per  P.  C.  B., 

$87.5O  (C.  B.). Paid  cash  to  hands  for  shop-work,  $275  (C.  B.). 

29.  Received  cash  for  petty  sales,  per  P.  C.  B.;  $1/2.96-  (C.  B.). 

30.  Sold  A.  W.  Smith,  Meadville,  Pa.,  on  %,  75  Complete  Uniforms, 
@  $25.  -*  (S.  B.).  ----  Received  cash  for  Wm.  Heron's  note  of  Sept. 
18,  less  discount.     Face  of  note,  $73O ;  Discount  for  unexpired  time,  Sept. 
30,  1884,  to  Mar.  21,  1885  (5  mos.  21  da),  at  Q%,  $20.81 ;   Net  amount 
received,  $7O9.19  (C.  B.).  -  -        -  Received  cash  for  petty  sales,  per  P.  C.  B., 
$175*  -  •      •  -  Partners'  salaries  for  the  month,  paid  in  cash,  $6O6. 

The  firm  of  "  Ames,  Metcalf  &  Co."  has  been  this  day  dissolved  by  mutual 
consent,  Mr.  Metcalf  withdrawing  ;  the  business  to  be  continued  by  the 
remaining  partners,  under  the  firm  name  of  "  Ames  &  Latimer."  A  complete 
statement,  showing  the  condition  of  the  business,  is  to  be  prepared,  each  part- 
ner to  be  credited  for  his  net  gain  or  charged  for  his  net  loss,  as  the  case  may 
be,  and  after  a  final  settlement  has  been  made  with  the  retiring  partner,  th« 
Ledger  is  to  be  closed,  the  balances  being  brought  down  for  continuation. 


!  JJ  APT  K  .\  It  I  X. 


or  RESOURCES  AND  i.ivr.n  H-IKS  NOT  BROWN  ON  LEDGER.* 

i.— Mdse.  unsold.  $!)?.->.  f>;>.    Interest  Receivable     A.-.-ru.  <l  ur 
on  A.  H.  Hinman*  note,  from  July  ?t\  to  dute  i','  mos.  .".  .Is.),  at  6jfe, 
$8.f3  f   Discount  for  uncxpired  time  (18  ds.)  on  our  acceptance, 
favor  W.  A.  Miller,  due  Oct.  18,  at  O'fc.  &/.2O.     Total.  $f).3,1. 

Liabilities, — Interest  Payable:  Accrued  interest  on  our  n<>te.  f.i\-,.r  Ira  May- 
hew.  fn>m  July  1  to  date  (3  mos.),  at  9%,  &//.','•'•  :  I'  -  ount  lor 
unexpintl  time  i")  mos,  4  ds.)  on  H.  T.  Loomis's  note.  A'/  i;.  /;\  • 
do.  on  J.  J.  Souder's  note  (1  mo.  22  ds),  <£//.. 7 7,  and  on  Frank 
Goodman's  acceptance  (1  mo.  22  ds.),  $2/.67.  Total,  &/M./7. 

Paid  L.  8.  Metcalf,  in  full  of  his  Net  Capital,  our  note  (r-i-ned  ••  Ames  & 
Latimer").  to  run  6  mos.,  with  interest  si  7'/f,  for  tf^'OOO  ;  Cash  for  Bal- 
*tf 2916.63$^ 


FORMS    OF    BOOKS. 

Tire  following  pages  exhibit  the  transactions  of  Set  TX.  \\ritt.-n  up  in 
comprehensive  form  in  the  various  books  of  entry.  The  pnrtirular  fcutur-  of 
this  set  consists  in  writing  the  original  entries  at  mirr  in  ^-puratc  lio-.ks.  t'rom 
which  they  are  posted  directly  to  the  Ledger.  Thin  method  hug  many  advun 
tagrs  over  that  of  making  consecutive  entries  in  the  Journal,  and  is,  in  one 
form  or  other,  adopted  by  all  large  establishments. 

The  only  difficulty  to  be  encountered  ia  the  danger  of  posting  such  entries 
as  are  contained  in  several  books — as,  for  instance,  sales  for  cash,  \vliicli  are 
entered  in  both  the  Sales-Book  and  the  Cash  Book — twice  to  the  Ledger. 
Various  means  of  obviating  this  have  been  devised,  of  which  the  simplest, 
and  the  one  generally  employed,  has  been  here  adopted.  Tliis  plan  permits 
nothing  that  is  entered  in  the  Cash-Book  to  be  posted  from  any  nther  l">»k. 
Tim-,  for  example,  the  amounts  of  all  ca«h  sales  are  placed  in  a  s|»  <-h! 
column  iu  the  r^ues  Book,  the  items  are  simply  marked  "C.  B."  and  | Noted 
fmm  the  Cash-Book  in  the  regular  order. 

The  Cash-Book,  as  will  be  seen,  is  also  provided  with  special  columns — 
one  on  the  Dr.  side  tor  Merrhandi-e  iti-ms.and  one  on  the  Cr.  side  for  KxjH.-nse 
items.  The  accountant  is  thus  enable.!  t->  post  to  these  accounts  at  stated 
periods — usually  at  the  end  of  each  month— the  total  amount  for  such  period, 
instead  of  being  rap,  •  r  each  item  wpanttely. 

Purchases  of  merchandise  are  here  enter.il   in   the  Journal  ;    however, 
where  anch  purchases  are  numerous,  a  Pun-haw  or  Invoice-Hook,  conforming 
in  general  arrangement  to  the  Sales-Book  here  presented,  may  be  empl 
to  advantage. 

•  In  order  to  awoctain  the  tract  net  gain  or  km  to  date— which  i«  particularly  desirable 
the  net  capital  to  be  withdrawn  hr  the  retiring  partner  will  '»   )ir»|><>rti<>iiately  affected 
—the  item*  of  IntrreM  RecHvable  and  InUre*t  Payable  enumerated  in  thin  Kbednle 
be  takes  Into  consideration.   The  manner  of  entering  these  data  iu  the  Ledger  la  •hown 
ige  m.    Aleo  eee  marginal  note*  on  page  SI. 


APPENDIX. 


123 


JOURNAL,.— SET  IX. 
Philadelphia ,  September  1,  1884. 


4 

MERCHANDISE     

6795 

2 

L.  S.  METCALF  -    - 

6795 

Amount  invested,  per  Inventory. 

S 

L.  S.  METCALF     -    -    To  Sundries     -    - 

1795 

5 

BILLS  PAYABLE,  per  Bill  Book 

1750 

6 

INTEREST,  accrued  on  notes       -    - 

45 

Assumed  for  him. 

3 

Sundries      -     -    -    -    To  G.  *W.  LATIMER  - 

5900 

7 

BILLS  RECEIVABLE,  per  Bill  Book  -    -    -    - 

1500 

G 

INTEREST,  accrued  on  above  notes  -    -    -    - 

13 

88 

Q 

*»0ft 

9 

A.  W.  SMITH,           "          '«..-. 

362 

12 

10 

E.  R.  FELTON,          "          "     

1170 

19^O 

12 

J.  J.  SOUDER,                 "               ".-.-. 

1104 

Amounts  invested. 

S 

G.  W.  LATIMER    -     -    To  Sundries     - 

900 

13 

A.  S.  PARISH,  Balance  of  %      -    • 

500 

14 

J.  F.  MOOAR,         "           "        -    - 

400 

Liabilities  assumed  for  him. 

1  *f 

400 

BILLS  PAYABLE      ------ 

40ft 

Accepted  his  draft  at  30  ds.  to  bal.  %. 

1104 

11  04. 

His  note  at  60  ds.  to  bal.  %. 

O/J 

2000 

2000 

Note  at  6  mos.  for  int.  in  business. 

1*4 


A  r  r 


i  x  . 


SALES  -  BOOK.— SET  IX. 
rhitn<lrli>h«i.    S<  /-/<  nil><  r    I,    /  s  s  /. 


UL 

CA» 

i. 

H.  r.  SPKNCKR, 

4  do*.  Shirt*.  M  quality    •    ®  $18          $48 
•    *•    Un:                   -       -             i  •        .7   • 
•0    "    Linen  I!<lkf».      -    -            f,           in 
3  pc*.  CaMlmere,  150  yd».  •            1.15      187.00 

IV.'    -, 

C.B 

Di*t.ofte$    19.14 

863 

72 

7 

/.     _ 

H.  T.  Looms,                          Cletctaml,  O. 
\ 
SO  Boys'  OrercoaU     •    •    •     QfS.SO    $275 
60     "            "             -    -    -             7.80      875 

660 

U.  It.                         atd  mot. 

9 

A.  J.  RIDER,                          Trenton,  N.  J. 

1  **  fSnit  fnr  aAlf                                             .        ft  VI 

C.B, 

1  box  Hdkfo..  «  doz.     -    -     ®$4           84 

89 

jr 

10 

E.  R  FELTON,                         Cleveland,  O. 
SpCKBng.Br<Mdcloth,100yda..®|4      $400 
50  Military  Coats,  per  order,            10        500 

000 

7.  .  . 

i.  SwEXSBEBG,       Grand  Rapid*,  M< 

90  Zouave  Uniforms  •--<{£  $15         $500 
1  pc.  Striped  Satin,  50  yds.           5          •:'•< 

C.B. 

• 
DiK*.qrSaU*,6%    •    •    •       12.50 

787 

50 

f  ?? 

A.  C.  LOBECK,                             New  York, 

1  Lot  ready-made  Clothing,  rtx.  : 
in  r  •<-•*'•  .                          ffti  ex          awt 

Wi  vi       7n 

»*            M 

8  pn.  Pant*   -    •    -    -            a           M 
16    '•••-•-             4          100 

11 

»     '           3            75 
1  Overcoat      15 

<;;!• 

Amount*  forward  .... 

.-/-,.'' 

//so 

.--• 

APPENDIX.                                                   125 

2 

Philadelphia,  September  15,  JSS4. 

C.B 

8 

7 

7 
14 

C.B. 

'-> 

4 

Amounts  forward     -    -    -    - 
C.  C.  COKTISS,                Minneapolis,  Minn. 

.  GENERAL. 

CASH. 

2189 

575 

730 
2500 
1700 

1875 

1190 
128 

156 

22 
25 

75 
22 

3    "          "          -----          jo             36 

9    '•    Linen  Hdkfs.   -    -    -          6            54 

135 
Disct  off  5%       -----        6  75 

/  1 

L.  L.  WILLIAMS,                Rochester,  N.  T. 

50  Military  Coats  (privates!,   ©  $10         $500 
5        •'           "      (officers),            15             75 

1  f 

WILLIAM  HERON,            Manchester,  2f.  H. 

50  Beady-made  Coats    -    -    -    @  $5       $250 

50  doz.  Collars      1  50      75 
5    "     F.  Y.  Shirts  -    -    -    -         21          105 

B.  R.                 Note  at  6  mos. 
o/t 

FRANK  GOODMAN,              Nashville,  Tenn. 

100  Zouave  Uniforms      -    -    -  @  $20     $2000 
50  Military  Coats,  "  Co.  H."  -          10        500 

B.  R.                  Acceptance  at  60  ds. 
9X 

J.  F.  MOOAR,                            Boston,  Mass. 

50  Uniforms,  "  Lincoln  Green,"  @C25     $1250 
30         "          Zouaves   -    -    -          15         450 

00 

C.  P.  MEADS,                       Syracuse,  N.  Y. 

20  Ready-made  Boys'  Coats  -    @  $5       $100 
30      "          "      Vests    -    -    -           1.50      45 

165 

THa/'t    nff   xrfn     .                                       B  9* 

•>/} 

A.  W.  SMITH,                       Meadville,  Pa. 

75  Complete  Uniforms  -    -    -    @  $25  -    -    -    - 

Sales  on  time,  to  Cr.  of  Mdse.    -    -    -    - 
Sales  for  Cash,  posted  from  Cash-Book  - 
Petty  Sales,  entered  only  on  Cash-Book  - 
Total  Sales  for  the  month  -    -    - 

9569 
1475 
1227 

22 
05 

1475 

12271 

27 

LJM                                               APPBXDIX. 

,                                                                     CASH  -  BOOK. 
Ca*h,  September  1,  1884. 

m 

i 

»» 

M 

s 
t 

II 

5 

T 
U 
19 

14 

15 

,.: 
17 

18 
« 

M 

»' 

M 

n, 

98 

u 

90 
80 

M 

D.  T.  Ann    -    •    •    Amount  Invented      .... 
UtMM.    R  C.  8..  Salw-B  ok      -    -    - 

I 

8 

11 

8 
7 
IS 

10 
10 

11 

7 
k 

t.r-.i  KM 

MMB. 

HH 
•00 

TOO 

100 

750 

11 

1000 

•  :j»;-j 
170 
500 

730 

Ml 

VH 

• 

12 
01 

80S 

64 

M 
98 
105 
787 

06 
188 
1*8 

N 

m 

88 

66 

117 
166 
87 
US 

IT.', 

n 

96 

W 
60 

96 

88 
44 

75 
94 

60 

75 
60 

'.1 

7T 

M    •-•                                   .      Pnttv  *A!*MI    P    r*    H 

M  -  ,     ,                                                               •»                          •• 

Moot.    0.  0.  8.,  Sato-Book      -    -    - 

AP    I^iwrnv                     i  » 

\!                                                             *»                      ** 

\f      -  •                                     .      P    P   P     ft*lAa_R/tsilr 

BILL*  UKCEITABLK  -    T.  W.  HannnroV  note  -    -    - 
brrnutsr  -    -    -    •    Oaaboret8mo<».3d*.,Atd^- 

K      R      PwTTtflH          .                  1  In     ",- 

\  W  SMITH       -    -    In  ftall  of  ^r      ...... 

Kogg     Potty  salo0  PCD       ... 

E.  B.  FBLTOJC     -    -    On  %      

V*         .                                     -      PnMv  ««li-«    P    P    R 

y  Dug     Pettj  nalrc  P  C  B       ... 

MofiE     CPU    Salen-Book     •    -    - 

lltMK         .                                                         **                             •» 

HILL«  RKCEITABLK  -    Wra.  Heron's  note    -    -    -    - 

• 

SET  IX. 


APPENDIX. 
Caslt,   September  1,  1884. 


127 

2 


1881 
Sept. 

1 

if 

4 

IS 

GENERAL 

EXPENSE. 

300 

3 
10 

EXPENSE    -    -    -    -    2  tons  Coal,  @  $5      .... 

6 

EXPENSE    -    -    -    -    Bill  of  Stationery     .... 

15 

11 

> 
10 
13 

EXPENSE    -    -    -    -    Hands,  for  shop-work  -    -    - 

k 

4800 

150 

15 
175 

EXPENSE    ...    -    Hands,  for  shop-work  -    -    - 

Ifc 

'BILLS  PAYABLE  -    -    Note  favor  T.  R.  Browne  -    - 

5 

1000 

18 
30 
25 
26 

'INTEREST  -    --.    Onabove,8mos.  3ds.,at6%  - 

fi 

40 

60 

112 
250 
100 

35 

EXPENSE    ....    Hands,  for  shop-work  -    -    - 

EXPENSE    -    ...    Porterage  and  Drayage      -    - 

38 

EXPENSE    -    -    -    -    Hands,  for  shop-work  -    -    - 

275 

ag 

30 

/INTEREST  -    -    -    -    Disc,  off  Heron's  note,  5  mo. 
[21  ds. 
EXPENSE    -    -    -    -    Partners'  salaries      .... 

6 

16 
15 

2 

20 

1746 
7907 
2945 

81 

31 
63 

606 
1746 

• 

L.  S.  METCALP  -    -    For  his  Capital  (Cash,  Cr.  p.  16) 

Balance*     

U73 

08 

/// 

09 

12326 

*  This  Balance,  being  already  shown  In  the 
Ledger,  in  not  carried  into  the  money  column  at 
the  beginning  of  the  new  month  in  the  usual  man- 
ner, but  entered  at  the  end,  after  the  proper  debit 
to  Cash  has  been  ascertained.    All  danger  of  post- 
ing this  amount  a  second  time  is  thus  avoided. 

LS0 


APPKXDIX. 


LEDGER-SET  ix. 
(i) 

D.  T.  Ames. 


1VM 

1NM 

>.,.: 

ao 

LoMAQaln  •    • 

Lt? 

M 

87 

Sept. 

1 

Caah      .... 

01 

BOOO 

u 

*• 

Baton  in     -   •    - 

MM 

>-j 

BOOO 

6000 

Oct. 

1 

Balance      -    -    - 

4W5 

«rj 

L.  S.  Metcalf. 


1SS» 

1 

Sundrte*    •    -    • 

^ 

1796 

Sept. 

1 

Mdse.     .... 

^ 

6796 

M 

30 

Low  ft  Gain  •    • 

L17 

64 

87 

M 

Bills  Payable      - 

WOO 

uara 

0796 

0796 

(3) 
Q-.  "W.  Latimer. 


1884 

1W4 

hpl 

1 

Sundries    -     -    - 

n 

900 

Sept. 

1 

Sundries    -    -    - 

Jl 

Mi 

M 

ao 

LOM  ft  Gain  -    - 

L17 

64 

87 

' 

Bainnct      •    •    • 

k»U 

63 

.70) 

6900 

Oct. 

1 

Balance     *    *   • 

4946 

(4) 
Merchandise. 


l-M 

18B4 

.--. 

1 

L  8.  Metcalf  -    - 

/I 

0796 

Sept. 

ao 

Snndriee    -    -    - 

02 

9600 

M 

7 

Ca.h      .... 

d 

4800 

•• 

•• 

Own      .... 

ol 

DM 

-.'7 

M 

ao 

loMdfc  Gate  •    • 

L17 

1661 

» 

" 

•• 

Btftntorjf  •    •    • 

976 

M 

i.  t.'*; 

•/.. 

1*!48 

i 

Oet. 

i 

Inventory  -    •    • 

VIS 

f« 

APPENDIX. 


129 


(5) 

Bills  Payable. 


1884 

1884 

Sept. 

15 

Cash      .... 

c2 

1000 

Sept. 

1 

L.  8.  Metcalf  -    - 

Jl 

1750 

" 

30 

Balance     -    -    - 

8150 

" 

15 

J.  F.  Mooar   -    - 

Jl 

400 

14 

80 

L.  S.  Metcalf-    - 

Jl 

2000 

4150 

4150 

Oct. 

1 

Balance      -    -    - 

3150 

(6) 
Interest. 


1884 

'• 

1884 

Sept. 

1 

G.  W.  Latimer    - 

Jl 

13 

88 

Sept. 

1 

L.  S.  Metcalf-    - 

Jl 

45 

" 

15 

Cash      .... 

c2 

40 

50 

" 

17 

Cash      -    -    -    - 

cl 

11 

n 

" 

30 

"         .... 

c2 

20 

81 

" 

30 

Int.  Receivable    - 

9 

96 

" 

" 

Int.  Payable  -    - 

69 

17 

" 

" 

Loss  &  Gain  -    - 

Ll7 

68 

W> 

134 

36 

134 

36 

Oct. 

1 

Int.  Receivable  - 

9 

33 

Oct. 

1 

Int.  Payable  -    - 

59 

17 

(7) 
Bills  Receivable. 


1884 

1884 

Sept. 

1 

G.  W.  Latimer    - 

Jl 

1500 

Sept. 

17 

Cash—  T.  W.  H.  - 

cl 

750 

" 

" 

Mdse.-H.  T.  L.  - 

si 

669 

" 

30 

"      W.  H.  -    - 

cl 

780 

" 

18 

W.  H.     - 

82 

730 

" 

" 

Balance      -    -    - 

5004 

" 

20 

J.  J.  Sender   -    - 

Jl 

1104 

" 

" 

Mdse.—  F.  Q.  -    - 

82 

2500 

6484 

6484 

Oct. 

1 

Balance  -    -    -    - 

5004 

(8) 
.  L.  Williams. 


1884 

1884 

Sept. 

1 

G.  W.  Latimer  - 

Jl 

600 

Sept. 

2 

Cash      -    --- 

cl 

800 

" 

15 

Mdse.    -    ... 

82 

575 

" 

16 

"         .... 

cl 

150 

" 

30 

Balance      •    •    • 

1075 

1075 

Oct. 

1 

Balance     ... 

728 

A  P  P  K  N  l>  I  A  . 


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A.  O.  Xx>beolc.                                       J.  J.  Bonder. 

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(17) 
Loss  &  Grain. 


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A  I'  I'  A.  .\  D1X. 


1.ILX.-BOOK 


BILL- BOOK. 


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BILL  -  BOOK 


DmAVM  OB 

DmAwzi  OB 

FOB  WHAT 

bKl» 

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In  waon  futon. 

O|T«J«. 

WH«««  PATABLB. 

1 

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^  ,•'      ! 

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Ira  M«yh«w  . 

Aw'd  for  M'f. 

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-• 

44          "           T.  R.  Browne. 

» 

Maker's  oflloe. 

1 

"     15 

J.  P.  Moow. 

AoiM,M'r*Co.  W.  A.  Miller. 

In  full 

Marine  Bank. 

1 

"     30 

AmeaftUuimer 

L.  8.  Mi-lcalf. 

Por  Capital. 

Miikc-r  '-  ..Ilire. 

THE    BILL  -BOOK. 


The  utility  of  thin  anxiliarj'  will  t»-  apimn-nt,  for  a  complete  record  of 
negotiable  paper  —  and  especially  of  our  own  outstanding  utilisations  —  is  <>f 
the  utmost  imporUoce.  The  form  here  ^-ivi-n  i.«  tin-  one  in  p-m-ral  UHO,  and 
|.Ianati«»n  is  neceflaary.  Although  many  autliors  liav«-  uttemptixl  t»  <1" 
ao,  thin  hook  can  not  profitably  be  used  aa  a  prinripal  book,  from  wliirli  ».. 
post  Ita  chi«-f  function  i*  that  of  a  "  tirklt-r,"  reminding  u»  of  the  maturity 
jf  all  notes  and  draila,  both  against  us  and  in  our  favor. 


SET  IX. 


APPENDIX. 


RECEIVABLE. 


133 


WHEN  DUE. 

DATE. 

TIME. 

YEAR. 

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4 

j= 

9 

fa 

•J 

1 

1 

5 

a 

o 

s 

^ 

^i 

•? 

tb 
•^ 

1 

1 

1 

1 

AMOUNT 

DISPOSED  OF. 

1884 

1834,  June  14 

3  mos. 

1884 

« 

750 

Sept.  17 

Paid. 

"     July  26 

3  nios. 

1884 

|| 

'2  U 

750 

"     Sept.   1 

6  mos. 

1885 

J 

650 

"       "     18 

6  mos. 

1885 

If 

730 

Sept.  30 

Disc. 

"     20 

60  ds. 

1884 

5! 

1104 

"       "     20 

COds. 

1884 

i 

i! 

2500 

PAYABLE. 


WHEN  DUE. 

DATE. 

TIME. 

YEAB. 

d 
ft 

,0 

£ 

1 

1 

>, 

<o 

a 
s 

X 

1 

tb 
3 
<5 

"S, 

4 

1 

> 

o 

fe 

si 

P 

AMOUNT 

DISPOSED  OF. 

1884 

1884,  July    1 

3  mos. 

1884 

i 

750 

"     Jan.  12 

8  mos. 

1884 

H 

1000 

Sept.  15 

Paid. 

"     Sep.  15 

30  ds. 

1884 

f! 

400 

u       u     30 

6  mos. 

1885 

2000 

THE    COLUMNAR    JOURNAL. 

In  addition  to  the  usual  debit  and  credit  money  columns,  this  Journal  ia 
provided  with  special  columns  for  such  accounts  as  are  most  frequently  affected. 
This  enables  us  to  post  to  the  accounts  thus  represented  the  aggregate  for  a 
certain  period — usually  one  month — instead  of  transferring  each  item  sepa- 
rately ;  thus  saving  a  vast  amount  of  labor  in  posting  and  considerable  space 
in  the  Ledger. 

The  following  pages  exhibit  what  is  known  as  the  "  Six-Column  Journal." 
The  special  columns  here  used  are  Cash  and  Expense  on  the  debit,  and  Cash 
and  Merchandise  on  the  credit  side.  The  transactions  are  taken  from  Set  IX. 


p 

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h 
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1 

0        K 

I 

-» 

MDSB.  L.  8.  MBTCALF  
Investment,  per  Inventory. 
a 

L.  8.  MXTCALT  Sundries. 
KILLS  PATABLB.  per  Bill-Book  
INTEREST,  accrued  on  notes  
Liabilities  assumed  for  Metcalf. 
// 

Sundries  G.  W.  LATIMB  
BILLS  RECEIVABLE,  per  Bill-Book. 
INTERBST.  accrued  on  above  notes. 

i  I.  \\  in  IAMB,  Balance  of  %. 
A.  W.  SMITH.  -  " 
B.  R.  FELTON,  "  " 
A  C.  LOBBCK,  "  •• 

J.  J.  SOUDER,  "  " 

Amounts  Invested. 
// 

O.  W.  LATIXER  Sundries. 
A.  S.  PARISH,  Balance  of  "c  
J.  P.  MOOAR,  "  "  
Liabilities  assumed  for  Latlmer. 
tf 

RXPBKSB  CASH  

Postage  stamps. 

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4 

APPENDIX.  137 


Set  X.— D.  T.  AMES  AND  G.  W.  LATIMER,   PROPRIETORS. 


Characteristics. — Continuing  the  business  of  the  preceding  set  under  the  new  proprietor- 
ship. Capital  increased  by  additional  investments.  Business  prosperous.  Net  gain  divided 
equally  between  the  partners  after  crediting  them  each  with  interest  on  his  net  investment. 

Accounts  used  in  addition  to  those  opened  in  Set  9. — J.  N.  Curry ;  Randall  & 
Horton  ;  W.  A.  Miller  ;  J.  C.  Miller  ;  A.  J.  Rider. 


Philadelphia,  October  1,  18S4.  D.  T.  Ames  and  G.  W.  Latimer, 
forming  the  firm  of  "  Ames  &  Latimer,"  continue  the  business  of  "  Ames, 
Metcalf  &  Co."  with  the  resources  and  liabilities  of  the  previous  business. 
Interest,  at  6  % ,  allowed  on  net  investment.  Losses  and  gains  divided  equally. 

D.  T.  Ames  makes  an  additional  cash  investment  of  $2OOO. 

Bought  of  Randall  &  Horton,  New  York,  on  60  ds.  credit  (2%  off  within  10  ds.), 

Invoice  of  Mdse.  amounting  to  $3OOO. Sold  James  N.  Kimball, 

Brooklyn,  N.  Y.,  for  net  cash,  1  doz.  Fancy  Neckties,  $12 ;  12  doz.  prs.  Lisle 
Thread  Stockings,  @  $3.  Total,  $ 

2.  Paid  shop-hands,  cash,  $3OO. Received  cash  for  petty  sales, 

per  P.  C.  B.,  $ff9. 

3.  Received  cash  of  E.  R,  Felton,  in  full  of  %,  $< -         -  Sold 

A.  W.  Smith,  on  %,  6  doz.  French  Yoke  Shirts,  @  $18;   10  doz.  Knit  Under- 
shirts, @  $7  ;  8  doz.  prs.  Knit  Drawers,  @  $8.     Total,  $ 

4.  Paid  cash  for  note  assumed  by  us,  favor  Ira  Mayhew,  due  this  day, 
with  interest.     Face  of  note,  $75O ;  Interest  accrued  (3  mos.  3  ds.),  at  Qfo, 
$ .*    Total,  $ 

5.  Sold  T.  B.  Stowell,  Providence,  R.  I.,  for  net  cash,  15  Alpaca  Coats, 
@  $2  ;  20  Casshnere  Vests,  @  $1.50  ;  6  doz.  "  Himyah  "  Collars,  @  $2.     Total, 
-,_g  -          -  Received  cash  for  petty  sales,  per  P.  C.  B.,  $/2O. 

7.  Paid  cash  for  Repairing  Store,   $15Oj    also   for  advertisement  in 

"  Philadelphia  Times."  $25.    Total,  $ _.  -  -      -  -  Received  cash  for  petty 

sales,  per  P.  C.  B.,  $96.83. 

8.  Paid  A.  S.  Parish,  in  full  of  % ,  per  sight  draft  on  A.  W.  Smith, 

$ Rec'd  of  L.  L.  Williams,  cash  in  full  of  a/c>  $ 

Sold  J.  D.  Odell,  New  York,  on  his  note  at  CO  ds.,  50  Complete  Uniforms, 

@  $20,  •*  Sold  Otto  Behr,  City,  for  cash,  5%  disc.,  4  doz.  Cotton 

Hose,  @  $1.80  ;   6  doz.  Mixed  do.,  @  $3.18;   12  doz.  Silk  do.,  @  $8.     Total, 
$ -         -  Received  cash  for  petty  sales,  per  P.  C.  B.,  $1O5. 

9.  Sold  J.  F.  Mooar,  on  % ,  24  Ready-made  Coats,  @  $5  ;   15  prs.  Pants, 

@  $3.75 ;  80  Vests,  @  $2  ;  1  Fine  Overcoat,  $25.    Total,  $ 

Paid  hands  for  shop-work,  cash,  $253. Received  cash  for  petty  sales, 

per  P.  C.  B.,  $295. 

*  All  calculations  of  interest  In  connection  with  this  work,  except  when  otherwise 
stated,  should  be  made  on  the  basis  of  860  days  to  the  year. 


APPENDIX. 

in.  Sold  W.  A.  Miller,  New  York,  on  %,  16  doz      Iliimah"  Collar*, 
18  dot.  "Elite"  Collars,  @$S;  20  do*.  "  Claudmi  $8; 

fiOdo«.pni  -  Punjab  "  Cuffs,  @  $8.75  ;  20  doz  ].••-      Rom...  '  cuffc,  (tt  $8.50. 
Total,  f  -  -       •  Received  cash  for  petty  sales.  per  P.  C.  B.,  $J/O.f>O. 
I  /  .  Received  cash  for  J.  J.  Souder's  note,  less  disc.      Face  of  note, 
Disc  off  for  1  mo.  11  ds.,  at  6#,  $  ;  Net  amount  received, 

Paid  Ruiidull  Si  llorton,  cash  in  full  of  %,  less  2%  discount. 
Face  of  %,  f  -  /    Discount,   tf  -  ;    Cash  paid.    ^  -- 
«  -  .  \N  .  Latimer  makos  a  further  investment  in  cash  of  jt/OOO. 

/'.'.  Booght  of  \V.  .1  Maxwell  &  Co.,  City,  ou  our  acceptance  at  60  ds., 
Bill  of  Mdwv.  luiiounting  to  $36OO.  •  •  •  -  Sold  J.  C.  Miller,  Lancaster.  I'a.. 
on  'V.  100  Complete  Uniforms,  @  $10,  ff 

15.  Sold  L.  H.  PackaVd.  New  York,  for  n.-t  rasl.,  :>  .I../..  ••  r,\  r..u  "  Collars, 
@  $2  ;  4  dox.  u  D'Oreay  "  Cravate,  @  $12.     Total,  ^  .  .          I  ..  .  •,  -i  v,  ,1 
cash  for  petty  sales,  per  P.  C.  R,  $160.25. 

16.  Paid  hands  for  shop-work,  cash,  $2~O.  -  i  <as!i  f.ir 
petty  sales,  per  P.  C.  B.,  $75.6O.  .....  Received  from  J.  F.  Mooar,  cash 

on  %,  $/5OO. 

18.  Sold  A.  W.  Smith,  on  "#,  \  case  Overalls,  6  doz.  prs.,  t.i  $6  jx?r  doz.  ; 
2  casea  Summer  Frocks,  12  doz.,  at  $18  per  do/.     Total.  .\  . 

Received  cash  for  petty  sales,  per  P.  C.  B.,  $!25.  .....  1'uid  raah  for  our 

acceptance  of  Sept  15,  favor  W.  A.  Miller,  due  this  day,  v?—  —  —  . 

/.'/.   i.v.-.  1  ,   .1  of  A.  W.  Smith  to  apply  on  %,  sight  draft  on  A.  B.  Uankin 
4  Co.,  for  $/8OO.  .....  Sold  J.  X.  Currey,  I^ancaster,  Pa.,  on  %,  10  Military 

Coat*.  @  $15  ;  5  do.  (officers'),  @  $25.     Total,  <?  -  -         -  Received  cash 
f»r  petty  sales,  per  P.  C.  B.,  $725.  .....  D.  T.  Ames  draws  out  cash, 


•-'/.  Sold  A.  J.  Rider,  Tr«-nt..   .   \    .1  ,  1   pc.  French  Casnim.  -n-. 

50  yds.,  @  $8  ;  10  yds.  Striped  Satin,  @  $6.    Total.  $  ---  iv,  ,1 

cash  for  petty  sales,  per  P.  C.  B.,  $JOJ. 

2.TTPaid  cash  for  our  acceptance,  favor  \V    J.  M:ix-.\«-il  \  Co.,  less  disc. 
Face,   $  Disc,  off  for  1  mo.  21  ds.,  $  N-  t   amount   paid, 

$  .....  Received  cash  for  petty  sales,  per  P.  C.  B.,   $.',<>. 

Paid  hands  for  shop-  work,  cash,  $35O. 

28.  Sold  A.  C.  Lobeck,  on  #,12  Boys'  Frocks,  (A  $2;    86  da,  @  $5. 
Total,  f  -  Sold  Oscar  Riess,  New  York,  for  cash,  5%   disc.. 

10  doc.  "Claudent"  Scarfs,  @  $2.85;    20  doz.  boxes  "  Linene  Rever.«il.l<  •" 
C«.llar-,  '•'  $1.25  per  doz.:  5  doz.  pre.  Celluloid  Cuffs,  (<*  $1.    Total,  $  _ 

Received  from  A.  C.  Lobeck  ca»h  in  full  of      ,   •>'  -- 
Received  cash  for  petty  K  <     H  .,  $/OO. 

.   Received  cash  for  A.  II    Hinmnn'x  not<-  of  July  26,  due  this  day. 
Face  of  note.  ?  InUTest  accrued  (3  mos.  8  ds.),  at  6#,  $  ; 

Amount  received,  $ 

.'tO.  Paid  cash  to  hands  for  shop-work, 


APPENDIX. 


139 


31.  Paid  Gas  bill  id  cash,  $/8;  Rent  for  October,  $fOO;  Partners' 
Salaries,   $£OO.      Total,   $  -          -  Interest  due  partners  on  their 

average  investment  (31   ds.)  :    D.   T.   Ames,    $36.69;    G.   W.    Latimer, 
$28.88.     Total,  $  -- 

MEMORANDUM  OP  RESOURCES  AND  LIABILITIES  NOT  SHOWN  ON  LEDGER. 
Resources—  Mdse.  unsold, 


Liabilities.  —  Interest  Payable  :  Accrued  interest  on  our  note,  favor  L.  S.  Met- 
calf  (1  nao.),  at  7%,  $77.67-  Also  discount  on  paper  not  matured, 
as  follows  :  on  H.  T.  Loomis's  note  (4  mos.  4  ds.),  at  Q%,  $73.  £3  ; 
on  Frank  Goodman's  acceptance  (22  ds.),  at  Q%,  $9.7?  '/  -on  J.  D. 
Odell's  note  (1  mo.  10  ds.),  at  6#,  $6.67*  Total, 

Entire  Net  Gain,  $ff6<5.86. 
STATEMENT  OF  RESULTS  AT  CLOSING. 


Mdse.  
Bills  Receivable  -  -  - 
A  W  Smith  .... 

$4344.37 
4150 
369 

Bills  Payable  -  -  -  - 
Interest  Payable  -  -  - 
D  T  Ames  - 

$2000 
40.94 
7364  05 

J.  F.  Mooar  
J.  N.  Currey  -  - 

461.25 
275 
3972  11 

G.  W.  Latimer  .... 

6557.44 

W.  A.  Miller     -    -    -    - 
J.  C.  Miller  - 
A.  J.  Rider    - 

380.70 
1900 
210 

15962.43 

15962.43 

Set  XI.— S.  S.  PACKARD  AND  W.  A.  MILLER,  PROPRIETORS. 


Characteristics.— In  this  set  is  presented  the  business  connected  with  the  publishing  of 
a  periodical.  There  are  two  partners,  investing  equally.  The  business  terminates  with  a 
net  gain,  which  is  shared  equally  between  the  partners,  after  crediting  them  with  salary  for 
their  services. 

[This  set  may  be  written  up  in  the  ordinary  form  of  books,  or,  still  better,  in  books 
provided  with  special  columns  for  the  most  frequently  recurring  items,  as  suggested  In  the 
forms  previously  presented.  Let  the  teacher  select  such  methods  as  appear  to  him  best 
adapted  to  the  case  in  hand.] 

Names  of  accounts  used. — S.  S.  Packard;  W.  A.  Miller ;  Cash  ;  Furniture  and 
Fixtures ;  Magazine ;  Printing  and  Manufacturing ;  Paper ;  National 
News  Co. ;  Western  News  Co. ;  Robert  Lowe  &  Co. ;  Subscriptions  ; 
Rent ;  Expense  ;  Contributions ;  Advertising  Expenses ;  Advertising 
Returns  ;  Moss  Engraving  Co. ;  Bulkley,  Dunton  &  Co. ;  Postage  ; 
Services ;  N.  G.  Miller ;  J.  J.  Little  &  Co. ;  Dominion  News  Co. ; 
Loss  &  Gain. 


140  APPfMi/X. 

\.ir     )  ../-A.   ,lnn<    ?.    /SS/.     S.  S.   P.t.-k  ,,rl  ini.l  \V    A.  Mill,  r  .-nt.  r 
Into  coputncrwhip  under  th«  (irtu  name  of  r  the 

purpose  of  carrying  on  the  pul.liration  of  TKt  Ntto  Bra  in  Education,  a 
month  I  r  magasiue  hitherto  puNi-luxl  by  S.  8.  Packard.  Mr.  Packard  trans- 
fers to  the  new  firm  the  resources  ainl  Imhilitim  of  hi*  fi.nni-r  lniKiness,  and 
it  to  hare  entire  charge  <>f  tlu>  iiliior'ml  w.irk,  n-<-.-i\  mir  thm-for  a  yearly 
•alary  of  $3400.  Mr  Miller  is  to  assume  tin-  tinajidul  nmnup  -mi-nt.  rec«  iving 
a  yearly  salary  of  $1800.  Each  partner  is  to  make  a  net  investment  of  $T>000, 
and  the  gain*  and  losses  are  to  be  divided  equally. 

8.  8.  Packard  invests:   Cash,  $&2OO  ;   I'nrniture  and  Fixtures,  vnlu.d 
at  $8OO  ;  Back  numbers  of  magazine,  estimated  vali.  ,•  '    Do.  in 

bound  volumes,  $3OO  ;    Electrotype  Plates,  valued  :  <     TUJH  r, 

$6OO.     Personal  accounts:    National  News  Co.,  $6OO  ;   Western  News 

S8OO;  Robt.  Lowe  4  Co.,  $2.*>O.     The  firm  awi. 
pired  Subscriptions,  estimated  at  &;,  .  ^.~>OOO. 

\\    \.  Miller  invests:  Cash,  $6OOO. 

Paid  cash  for  rent  of  building  for  Jmir,  fiXOO.  -  -  -       Received  cash  for 
15  yearly  subscriptions,  as  per  Subscription  Register,  .    -\  ,".'>.;     .... 

Cash  sales  of  magazine  this  day,  per  P.  <'.  H..  uinoun  ~tO\ 

.'{.  Received  cash  for  rent  of  upper  floors  for  June,  $35O.  -         -  Paid 
cash  for  contributions  to  July  number  as  follows  :  Chas.  Tiffany,  $  ju<>  ; 
8.  II  V.56>.     Total,   $  —  ^_.  -       --  Paid  cash  for  adverti>iinr   in 

daily  papers,  $&O.  .....  Received  cash  for  26  subscriptions,  an 

Reg.,  $/3O.  .....  Cash  sales,  per  P.  C.  B.,  #//. 

/  .  Sold  Robert  Lowe  &  Co.,  City,  on  %,  50  copies  June,  @  86',  ff-. 
Paid  cash   for  contributions  to  Jul  -    M.  Leimx.  A'".  7;    Ixiuis 

Di-Iatour  (translation),  $2O.      Total,    $  ----  ,    rush    f.,r 

advertisements  to  be  inserted  in  July  issue,  $60  ;  also  for  sales  per  P.  C.  H.. 
$8.60. 

it.  Credit  Moss  Engraving  Co.  for  Engravings  furnished  for  July  iiuinlx  r, 
as  per  bill,  $3&.6O.**  -  H  'ti.-lit  <>!   llnlkl.-y.  Dunton  i\ 

Bms.   Machine  Finished  Book   I'HI  +>.   -\  -  .,•    also 

50  Rms.  Buff  Cover  Paper,  21  x  26  -  50,  (d  $6.88.  >$  --    Total,  -^ 
Paid  cash  for  circular*,  >$/O  ;  for  postage  sin' 
-old  Western  N  hicago,  on  %t  25  copies  April  ;    ; 

&>  da  June.    Total,  -.  «i  SO*,  ^"'  --  -  1.  )i   i-r 

70  subscriptions,  as  per  Sabs.  Reg.,  $36O;    also  for  sales,  per  P.  «'.  B., 


aeeoant  for  thl«  ami  the  followtoff  item. 


bit  Printing  and  Manufacturing  account. 

$  Credit  Subscriptions  acconnu  Thin  amount  npreMBta  the  estimated  cost  of  »npplylng 
the  SMgirisi  to  ralMcrlbera  for  the  time  paid  for,  but  n»t  >.-t  eUpced.  and  inasmuch  un  the 
D«W  1m  It  aipemd  to  complete  the  eoRafraMmU  entered  Into  by  the  former  proprietor,  this 
item  coMtttatM  a  ttabOtty.  and  mart  be  treated  accordingly. 
|  Credit  BatacriptioM  account. 

<xltt  Magari  ne  account. 
••  Debit  Printing  sad  Manoiactaring  aeeoant. 


APPENDIX.  141 

7.  Received  cash  for  advertisements,  $/6O. Paid  salaries  in  cash 

$75 ;  also  sundry  expenses,  per  Ex.  Bk.,  $3&-.86. 

9.  Received  cash  of  National  News  Co.,  in  full  of  %,  .#  

Received  for  40  subscriptions,  as  per  Subs.  Reg.,  $2OO  ;  also  for  sales  per 
P.  C.  B.,  $26. 

10.  Sold  N.  G.  Miller,  Boston,  on  %,  20  copies  Jan.;  30  do.  Feb.;  20  do. 
March;  30  do.  April;  55  do.  June.     Total,  155  copies,  @  38?,  •*  also 
5  Bound  Volumes,  hf.  morocco,  1883,  @  $6,  .#                 Total  bill,  •«*   -     • 

11.  Received  from  Western  News  Co.  100  copies  March,  not  disposed  of, 

for  which  we  credit  them  @  30?  per  copy,  •*  Received  cash  for 

86  subscriptions,  as  per  Subs.  Reg.,  $&3O. 

12.  Cash  sales  per  P.  C.  B.,  $2O.  -  -       -  Paid  cash  for  copyright,  July 
number,  $1* 

13.  Bought  for  cash  1  Herring's  Safe,  No.  3,  $&5O. Received 

cash  for  20  subscriptions,  as  per  Subs.  Reg.,  $7OO. 

14.  Salaries  paid  in  cash,  $8O ;  also  sundry  expenses,  per  Ex.  Bk., 

$f>5.  75. Received  from  our  printers,  J.  J.  Little  &  Co.,  July  edition, 

10000  copies.     We  credit  their  account  for  the  following  items : 

Composition  and  Electrotyping,  Text,  184,468  erne,  ®  $1.10  pr.  M.      ....    $202.91 
Composition    "  Advtsmts.  and  Cover,  28,460  ems,  @  $1.10  pr.M.    31.30 

8  Extra  Plates,  to  print  2  sets,  @  600    ...._ 4.90 

Electrotyping  Back  Strip .60 

62  hours  Alterations  and  Extra  Time,  @  500 31 

8  Boxes  for  Plates,  @  750 2.25 

Press  work,  10,000,  7  forms,  16  plates  ea.,  40  tokens,  @  500 140 

"       1  form,  8  plates  (2  sets)  20  tokens,  @  500 10 

"       Covers,  40  tokens,  @  400      ............  jg 

Binding,         "       Copies,  ©  $8.50  per  M. 85 


Total $523.86t 

16.  Shipped  Western  News  Co.,  on  %,  1300  copies  July,  @  80?,  -^ 

Delivered  to  National  News  Co.,  City,  on  a/c,  1000  copies  July,  (ft  30?, 

$ .  -  Sold  N.  G.  Miller,  on  %,  100  copies  July,  @  38?,  $ — . 

-  Received  cash  for  advertisements,  $275 ;  also  for  cash  sales,  per 
P.  C.  B.,  $62.5O. 

IS.  Sent  to  General  Post  Office,  for  regular  subscribers.  0250  copies  July 
issue ;  Paid  postage  on  same  in  cash,  2850  Ibs.,  @  2?,  $i__~— .  /   also  paid 

drayage  to  Post  Office  in  cash,  $4-.5O. Sold  N.  G.  Miller,  on  %,  160 

copies  July,  @  38?,  •*  Cash  sales,  per  P.  C.  B.,  $72 'SO. 

lit.  Paid  R.  H.  Stone  for  contribution  to  August  number,  $5O. 

Received  cash  for  22  subscriptions,  as  per  Subs.  Reg.,  $f/O ;  also  for  sales 
per  P.  C.  B.,  $3&.5O. 

20.  Delivered  to  National  News  Co.,  on  %,  800  copies  July,  @  80?, 
$ Cash  sales,  per  P.  C.  B.,  $63.  76. 

21.  Shipped  Dominion  News  Co.,  Montreal,  on  %,  800  copies  July, 
@  80?,   •*  ....  Salaries  paid  in  cash,  $8O;  also  petty  expenses, 
per  Ex.  Bk.,  $9. 

*  Debit  Expense  account.  t  Debit  Printing  and  Manufacturing  account. 


L4I 


APPKNDIX. 


93.  Paid  J.  J.  Little*  Co.  cash.  $623.86.  Received  caah  for 

10  subscriptions,  as  per  Sub*.  Reg.,  $6O. 

I  /.  Received  from  J.  J.  Little  *  Co.,  supplementary  edition  of  July  imme, 
8000  copies,  for  which  wo  credit  them,  a*  per  bill  : 

Prewwork.  MOD,  7  form*.  16  plate*  <*..  8  token*,  ®  W     -    -    -     MB 
I  form,    8          "        4      "       ®  SO*     •    -    -         * 
verm,  8      "       Q40*     •    •    •         3.10 

Binding,          "     cople*,  fc  $8JSO  per  M. 

Total * 

26.  Paid  ca*h  for  advertising,  $25. Sent  to  Post  OtISiv,  f ..r  -ni>. 

•crlbers,  2000  copies  July  issue.     Paid  for  postage,  172  11*..       .'  ,  .s* 

28.  Paid  Moss  Engraving  Co.  cash,  in  full  of  %,  ,$ 

sales,  per  P.  C.  B..  $6&.  SO. 

SO.  Received  on  %  of  Western  New*  Co.,  cash,  $77O. Credit 

partners  for  salary,  1  mo.:    8.  8.  Packard,  $2OO  ;    \\  .  A.  Mill,  r,  A, 

Total,  ^  Paid  salaries  due  employees  to  date  in  cash,  $8f*. 

.  Paid   «i»h   for  rent  of   Telephone,    $I2.6O;    Gas   bill,   ^T 
Total,  $ 

MEMORANDUM  OF  RESOURCES  AND  LIABILITIES  NOT  SHOWN  ON  LEI> 
Betoureet. — Back  numbers  of  Magazine  and  bound  vole.,  valued  at  $886.  . 
Paper,  140  Kms.,  @  $5,  and  26  do.,  @  $7,  $896 ;  Electrotype  1 
valued  at  $33O;  Furniture  and  Fixtures,  $t25O. 
LiabUttie*.— Un611ed  Subscriptions,  estimated  at  &S/OO. 

After  properly  entering  the  above  items,  the  Business  Accounts  will  show 
the  following  balances:  Crtditt,  Magazine.  $/6J8.6O;*  Subscriptions, 
$f5&5 ;  Advertising  Returns,  $&9O.  DebUt,  Printing  and  Manufacturing, 
$678.36;  Paper,  $/O&8 ;  Contributions,  $295;  Services,  $<;• 
Postage,  $69.&&  ;  Rent,  $J5O ;  Advertising  Expenses,  $65;  Expense, 
$9  6.  JO. 

re  Net  Gain,  $683.&O. 

STATEMENT  OF  RESCLTS  AT  ('LOSING. 


Magazine  (Back  numbers)  - 

Pa  nor 

|86B.M 

BN 

Subscriptions  (Unexpired) 
Bulklev    Dunton  *  Co   • 

$8100 
1344 

Printing  and  Mto  (Plates)  - 
Furniture  and  Fixtures  -  - 
Cash  -  - 

830 

llTT,    K1 

J.  J.  Little  &  Co.  - 
8.  8.  Packard  (Partner) 
W   A   Miller  (Partner)  . 

D0.9Q 

5541.70 
iUfil    ?0 

National  News  Co.  -  -  - 
Western  News  Co.  -  -  - 
Root.  Lowe  Co.  .... 

Nil    \!ill,.r 

m 

48T> 

m 

I'-?  ?d 

Dominion  News  Co.  -  -  - 

90 

15527.60 

15527.60 

•  In  order  that  the  Magazine  iccoant  may  be  made  tu  show,  M  nearly  a*  poavibl'-,  Dio 
actnal  gain  on  toe  publication,  it  would  be  well  to  clone  Into  It  all  ttuwe  account*  which  are 
reaOy  rabcidiary  to  It.  Tbeae  are— Subscription*.  Printing  and  Mlg..  Pap»-r.  Contribution*, 
and  AdTrrti»lng  Return*.  The  Magaalne account  wll]  then *bow  again  of  I1731W. 


APPENDIX.  143 

Set  XII.  — CHARLES    PARSONS,   W.    H.  TETLOW,   AND    EDWARD 
PARSONS,    PROPRIETORS. 


Characteristics.— Broker's  business.  Buying  and  selling  stocks  and  bonds  on  specula- 
tion, and  on  account  of  other  parties.  Discounting  notes,  loaning  money  on  bond  and 
mortgage,  etc.  Partners  investing  in  equal  amounts.  Business  prosperous.  Net  Gain 
divided  unequally,  as  per  agreement. 

[The  books  generally  used  in  a  medium  business  of  this  character  consist  of  a  Day- 
Book,  or  Blotter,  in  which  the  transactions  are  recorded  as  they  occur, and  a  Cash-Book  from 
which  all  the  entries  are  posted  directly  to  the  Ledger.  As  nearly  all  the  transactions 
involve  cash,  the  Journal  is  usually  dispensed  with,  canceling  entries  being  made  in  the 
Cash-Book  for  such  transactions  as  do  not  contain  cash.] 

Names  of  accounts  used. — Charles  Parsons  ;  W.  H.  Tetlow ;  Edward  Parsons  ; 
Cash  ;  IT.  S.  Fours ;  TJ.  S.  Four-and-a-Halfs  ;  Expense  ;  Del.,  Lacka. 
&  Western  R.  R.  Stock  ;  H.  H.  Duncan  ;  Commission  ;  U.  S.  Threes  ; 
S.  S.  Packard  ;  Interest ;  Georgia  Sixes  ;  TJ.  S.  Currency  Sixes  ;  Bills 
Receivable  ;  Long  Island  R.  R.  Bonds  ;  Mortgages  Receivable  ; 
Metropolitan  Elevated  R.  R.  Stock:  Western  Un.  Telegraph  Stock  ; 
Del.  &  Hudson  Canal  Stock  ;  Bills  Payable;  Loss  &  Gain. 


New  Yorlc,  April  1,  1884.  Charles  Parsons,  W.  H.  Tetlow,  and 
Edward  Parsons  unite  in  copartnership  under  the  firm  name  of  "  Parsons, 
Tetlow  &  Co."  The  partners  are  to  invest  equally,  and  losses  and  gains  are 
to  be  apportioned  as  follows:  Charles  Parsons,  40 %  ;  W.  H.  Tetlow,  85%  : 
Edward  Parsons,  25  %. 

Charles  Parsons  invests  Cash,  $2>5OOO. 

W.  H.  Tetlow  invests  $10000  U.  S.  Fours,*  1907,  coupon,  @  121£,t 
$?2/5O;\  Cash,  $f285O.  Total  investment,  $25OOO. 

Edward  Parsons  invests  $5000  U.  S.  Four-and-a-Halfs,  §  1891,  registered, 
@  111|,  $5587. 25.;  Cash,  $/9&/8.75.  Total  investment,  $25OOO. 

Paid  cash  for  books  and  stationery,  $35  /  Rent  for  April,  $!5O. 

*  Bonds  Issued  by  the  Government  drawing  4  per  cent  interest.  Interest  payable  quar- 
terly, viz. :  January  1,  April  1,  July  1,  and  October  1.  Coupon  and  registered. 

t  At  the  New  York  Stock  Exchange  all  securities  are  quoted  "  flat" — that  is  to  say  the 
quoted  market  price  is  for  the  bond  as  it  stands  at  the  time,  including  the  accrued  interest, 
except  that  after  the  closing  of  the  transfer  books  the  registered  bonds  are  quoted  "ex- 
interest,"  which  means  that  the  interest  then  coming  due  belongs  to  the  person  holding  the 
bonds  at  the  time  the  transfer  books  were  closed,  and  not  to  any  subsequent  purchaser.  The 
transfer  books  of  U.  8.  registered  bonds  are  closed  for  the  month  preceding  the  day  on  which 
the  interest  is  i>aid. 

J  Some  brokers  use  but  a  single  account,  "  Securities,"  to  show  the  gain  or  loss  result- 
ing from  these  dealings;  others  make  use  of  a  few  general  heads,  such  as  "Government 
Securities,"  "  Railroad  Bonds,"  etc. ;  while  still  others  employ  a  separate  account  for  each 
kind  of  security  dealt  in,  as  is  here  proposed.  Another  method  when  dealing  in  first-class 
securities  is  to  employ  only  a  "Premium"  account,  which  is  debited,  when  securities  are 
purchased,  for  the  amount  which  they  cost  in  excess  of  their  par  value,  and  credited  for  what 
i  hey  bring  above  their  par  value,  when  sold;  the  securities  being  counted  as  cash  on  hand  for 
laeir  par  value. 

§  Government  bonds  drawing  4J  per  cent  interest,  payable  March  1,  June  1,  Sept.  1,  and 
Doc.  1.  Coupon  and  registered. 


144  APPENDIX. 


-crlved  ou»h  for  !  $UX*HI  1     S  Four*,  1907.  $/OO* 

Bought  fur  cash  100  shares  Delaware,  Lackawauna  &  Western   i. 


.'{.  Received  from  II  II.  Duncan  cash  on  deposit,  as  a  margin,  to  cover 
purchase  of  stocks  which  lu>  haa  directed  as  to  make  for  him.  ..V/fy 

-/.  Hought  for  H  II.  I>uncan,  for  cash,  100  shan-*  N  \  <  .  utrnl  H.  R. 
Stock,  ^  102},  |P/^*  '•  Our  commission,  |Jv,  fi/lf.&O.f. 

ush  $10000  U.  8.  Threes.  |  reg..  @  100|  (ex-int),  tftJLLLL  '  J 

S.  Received  of  8.  8.  Packard  on  deposit,  as  margin,  cash,  $fOOO. 

Bought  for  8.  8.  Packard,  for  cash,  100  shares  Chicago,  Burlington  &  Qm 
R.  R.  Stock,  preferred,  (*  118],  $jJJuL.    Our  commission,  \%,  T*  >  $ '•*  ° 

7.  Sold  for  ca*h  II.  II.  Duncan's  100  shares  N.  V.  C,  ..tral  R.  R  Stock, 
<3  106,  $U2-L..  Our  commission,  \%,  $4?  "',  Inten-st  on  $yj<>-j.  .'id  for 
dds.  (-'  6Jfc,  if  .  .  .  Ri-mitt«-d  to  II.  II.  Duncan  du-ck  for  balance  dm- 

9.  Bought  for  cash  $5000  Georgia  Sizes,**  @  104,  #.£_- 
Received  quarterly  dividend  of  2%  on  100  shares  Del.,  Lacka.  &  \\  •  st.  rn  H  R. 
Stock  in  cash,  sf.s1fiL.tt 

/  /.  Sold  for  cash  50  shares  Del.,  Lacka.  &  Western  R.  R.  Stock,  @  105, 
-  Paid  cash  for  advertising.  $26. 

14.  Sold  for  cash,  8.  8.  Packard's  100  shares  Chi.,  Hur.  &  Quiiicy  H  R. 
Stock,  <a  120.  &LLL2. .  Our  commission,  J  # ,  $J±±L-.  luu-n-st  on  $10387.50 
for  9  ds.,  @  6  J6 ,  $JJiLLL  Balance  to  his  credit,  Tg  '  *• 3  ^'  V 

HI.  Bought  for  cash  $5000  U.  S.  Fours.  1907,  coup.,  (./.  1201,  $JaAU;'  ' 
also  $10000  U.  8.  Currency  Sixes,  #  1895,  reg.,  @  183,  $J~t 

ii     >  L/     W^ 

/  T.  Paid  8.  S.  Packard's  sight  draft  for  balance  of  %  in  cash,  ^lki-L:  v 

Discounted  for  H.  I>.  Nichols  his  note,  our  fa^vor,  @  80  ds. ;  Face  of    _,   , 

note,  $SOO;  Discount  off  for  IJ3  ds.,  @  6J6,  ^^tZ_L,-  Cash  i»id,  >>%<V  7  <'  * 

•  We  receive  three  month*'  interest.    Credit  U.  8.  Fours  account. 

t  Stocks  are  n»aally  Issued  in  shares  having  a  par  value  of  $100  each,  ami  quotations 
are  made  at  so  much  per  cent  on  the  basis  of  a  par  value  of  (100  per  *hare.  Thn»,  in  the 
above  ease,  10SJ  mean*  $10*i  (or  $10S.1.»)  for  1100  worth  of  the  par  value,  or  one  «hare  of 
Uv  stock. 

J  Debit  Cash  and  credit  II.  H.  Duncan.  Stock  brokers  require  from  the  penon  for 
whom  they  bay  and  ••  carry  "  stock  a  deposit  to  protect  them  against  any  lots  which  might 
resmlt  Iron  a  decline  la  the  value  of  the  stock  thns  held.  This  "  margin  "  la  usually  10-W 
per  eeat  of  the  par  value  of  the  stock  to  he  purchased.  The  broker  furnishes  the  necessary 
additional  funds,  charging  legal  rate  of  Interest  lh< 

|  Debit  II.  H.  Duncan  for  the  cost  of  the  stock  plus  our  commission. 

I  Government  bonds,  bearing  8  par  eeat  Interest,  payable  Feb.  1,  May  1.  An?.  1,  and 
Kov.L  Registered  only. 

•*  Bonds  IssBid  by  the  Stats  of  Georgia,  bearing  0  per  cent  interest. 

ft  Credit  Del ,  Lacka.  *  Western  R.  R.  Stock  account. 

These  bonds  an  so  called  from  the  fact  that  the  Interest  on  them,  6  per  cent,  is  pay- 
able In  currency,  and  not  In  coin,  as  is  toe  ease  with  all  other  Government  bond*  now 
outstanding.  They  are  payable  80  year*  from  date,  and  mature  at  different  dates  from  1986 
to  IBM.  Interest  payable  Jan.  1  and  July  1.  Registered  only. 


145 


APPENDIX. 


19.  Bought  for  cash  $5000  Long  Island  R.  R.  5%  Bonds,  @  102, 
.  -  Sold  for  cash  $10000  U.  S.  Fours,  1907,  coup.,  @  123J,  •*  '  &  3/^ 

22.  Bought  for  cash  $5000  U.  S.  Currency  Sixes,   1899,  reg.,  @  131, 
ff  i           ......  Procured  for  Byron  Horton  the  discounting  of  his  note, 

@  60  ds.,  for  $5OOO;  Received  brokerage,  \%,  in  cash,  :*  >  ?  '  ^  .- 

23.  Loaned  W.  A.  Miller,   for  one  year,  interest  at  Q%  per  annum, 
$5OOO,  receiving  as  security  his  bond  and  mortgage  on  Paterson  prop- 
erty.* -        -  -  Sold  for  B.  W.  Jones  300  shares  Illinois  Central  R.  R.  Stock. 
Received  commission,  \%,\i\  cash,  $\  7'  $"; 

2<J.  Sold  for  cash  $10000  U.  S.  Threes,  reg.,  @  101,  $JJLL£V 
Bought  for  cash  100  shares  Metropolitan  Elevated  R.  R.  Stock,  @  99,  •* 
also  of  B.  White  on  our  acceptanceja)  10  ds.  (interest  @$%),  200  shares  Del. 
&  Hudson  Canal  Stock,  (g>  94J,  ^^Z2^f4nd  100  shares  Western  Union  Tele- 
graph Stock,  @  62J,  -**-  •  '  Total,  -?  '-  ,!  /_•/-  "• 

3O.  Sold  for  cash  $5000  Georgia  Sixes,  @  101,  -*  *".!  *  -  .  $5000  Long  Tsl. 
R.  R.  Bonds,  @  100,  $^,  -  /  50  shares  Del.,  Lacka.  &  Western  R.  R.  Stock, 
(ffi  105  i,  $  •'  .....  Received  quarterly  dividend  of  \\%  on  100  shares 

Western  Union  Tel.  Stock,  ff  W'l)    .  .....  Paid  current  expenses  in  cash, 


MEMORANDUM  OF  RESOURCES  AND  LIABILITIES  NOT  SHOWN  ON  LEDGER. 

Resources.—  $5000  U.  S.  Fours,  coup.,  @  121,  $&££*-;  $5000  U.  S.  Four-and- 
a-Halfs,  reg.,  @  112J,  $f\9*';  $10000  U.  S.  Currency  Sixes,  1895, 
@  123|,  $J*JL&;  $5000  U.  S.  Currency  Sixes,  1899,  @  131f  ,  #£££?;  ~'  $ 
100  shares  Met.  Elevated  R.  R.  Stock,  @  98  J,  $£&£.;  200  shares  Del. 
&  Hudson  Canal  Stock,  @  94J,  .g  /  7  *?  6/>  100  shares  Western  Union 
Tel.  Stock,  @  61|,  $t\{  t  i'\?  ^Interest  Receivable  :  Accrued  interest 
on  W.  A.  Miller's  mortgage,  $5000  (7  ds.),  @  §%,  •?  4~f3 

LinbUities.  —  Interest  Payable  :  Accrued  interest  on  our  acceptance,  favor  of 
B.  White,  $25187.50  (1  day),  <WQ%,  .e  *-/^<?    .  a]so  disc.  for  unexpired 
time  (20  ds.)  on  H.  D.  Nichols's  note,  @  6  %  ,  $hlt7      Total, 
Entire  Net  Gain,  $522.89. 

STATEMENT  OF  RESULTS  AT  CLOSING. 


U  S  Fours      .... 

ftRO'tti 

Bills  Payable  -     - 
Interest  Payable 
Charles  Parsons  - 
W.  H.  Tetlow      - 
Edward  Parsons 

-     -     -  $25187.50 
-     -     -            5.87 
-    -    -     25209.16 
-    -    -     25183.01 
-    -    -     25130.72 

U.  S.  Four-and-a-Halfs  - 
U.  S.  Currency  Sixes 
Met.  Elevated  R.  R.  Stock 
Del.  &  Hudson  Canal  Stock 
Western  Union  Tel.  Stock 
Cash    
Bills  Receivable     -     -     - 
Mortgages  Receivable     - 
Interest  Receivable    -    - 

-    5625 
-  18918.75 
-    9825 
-  18950 
-    6187.50 
-  29654.18 
-      500 
-    5000 
5.83 

100716.26 

100710.20 

*  Debit  Mortgages  Receivable  account.    This  account  is  treated  in  all  respects  like  Bill* 
Receivable  account. 


APPXK  It  I  A  . 


FORMS  OF  AUXILIARY  BOOKS, 

Following  are  given  forms  of  auxiliary  book*  in  general  use.  The  latter 
form  of  Caah-Book  may  be  used  also  as  a  principal  IxNik.  u  <-..lunm  U-nnr  pro- 
vided for  the  ledger  |>age«.  Model  ..t  Hill  lUx.k  will  U-  r..un.l  ,,..  ]>age  182. 


CASH  -  BOOK.—  TRANSACTIONS  OF  SET  VII. 

\,,r      ),„•/..       »/<///.      /.S.V/. 


UM 

May 

l 

w 
u 

* 

5 

• 

10 

18 
10 

» 

M 

0000 

570 
MO 
226 

1500 

1885 
1875 

H 

50 

MM 

1000 

-.1.-, 

1000 

1875 
570 

Paid  for  Office  Furniture      .... 
"    Book*  and  Stationery      
Deposited  in  Fir*t  Nstloiwl  Bank     ..... 

Sold  from  T.  ft  !!.'»  Salo,  No.  1,  &0  brlx.  Flour  -     $11.40 

Sold  from  T.  A  H.'n  Bale*.  No.  «,  75  brla.  Pork    -       W 

Sold  from  Wheeler's  Sato,  No.  1,  800  bnxh  Wheat  •   8.25 

HKU.-> 

iiifiir, 

June 

1 

. 

M 

CASH  -  BOOK. 


lor/..   .»!/»//,  1884. 


•M 

liar 

5 

T.  *  H.'s  SALE*,  No.  1    -    fiObrU.  Flour  -    -    •  $11.40 
KD((      -    35    **       "  St.  L.  Ez    14 

"".I 

•"'•, 

T.  A  H.'«  SAU*.  No.  *   -    75    "     Pork    -    -      SO. 
W>EKLm'fSALW.No.l-    500  bach.  Wheat  •    •   8.95 

I     1       II  i   «i»                                       .       In    full  nf  "r 

1500 
1875 

10645 



n».ir, 

\(W, 

Jnn. 

870 

APPENDIX. 


147 


SALES -BOOK.— TRANSACTIONS  OF  SET  IV. 

Buffalo,    March  2,  1884. 


MILLARD  FILLMORE,  City.  Note  at  3  months. 

1  Set  Enameled  Furniture   - 75 

1   "   Black  Walnut  Furniture  (oiled)    -    -    -    -  275 

1  Carved  Rose-wood  Bureau 100  450 

—  3- 

JAMES  TRUMAN,  Rochester,  N.  Y.  Cash. 

1  Mahogany  Settee      ......----         45 

6  Parlor  Chairs .  $6.00 

1  Rose-wood  Tgte-a-Tete 75 

1 B.  W.  Library  Book-case  ........         80  236 

^ 

A.  W.  SMITH,  Meadville,  Pa.  On  %. 

1  B.  W.  French  Bedstead 50 

1  Extension  Dining  Table  - 25 

1  Enameled  Bedroom  Suit 85  160 

5 

J.  H.  GOLDSMITH,  Detroit,  Mich.  Note  at  60  ds. 

6  Gothic  Chairs $7.00         42 

1  B.  W.  Dressing  Bureau 55 

1  French  Mantel  Clock 75 

6  R.  W.  and  Brocatelle  Parlor  Chairs,  -     $10.00          60  232 

-(>- 
GEORGE  T.  SMTTHE,  Syracuse,  N.  Y.  Cash. 

12  Dining  Chairs $3.00 

1  B.  W.  Child's  Crib 15 

1  Ornamental  Etagdre 45  96 

TOTAL  SALES 1174 

TRANSACTIONS  OF  SET  VII. 

New  York,  May,  1884, 

1884  ~~ 

May      1    FURNITURE For  office    - 850 

EXPENSE    -•-.--    Books  and  Stationery  -    -  50 

2    FIRST  NAT.  BANK  -    -    -    Deposited 4000 

0    "    "    "...     »  1000 

10    «»»..."  2000 

80    "    "    "...     »  1000 

1875 

TOTAL  CASH  DISBURSED 10275  10275 

Jluiance 370 

10645 


APPENDIX. 


COMMISSION    SALES 
Thompson  &.  Hayes's 


tft 

M.y 

Jim.- 

11 

It:- 

*v 

m 

M 
ante. 

1HO 

0 

87 
37 

816 

M 

tt 
18 

no 

1  \tmni  (Minn    *  1  4ti  nn  MQft    . 

Thompson  &  ilaye*'*  Net  Proceed*  • 

:o. 

aoo 

Hi 

BANK    CHECK -BOOK 


PASS  -  BOOK. 

„.«. 

DBF* 
m 

^. 

r»«ci 

issl 
M  ,  .  V 
"    6 

4000 

].«N, 
tooo 

DT.      FUST  IUTMUI  IAXE  n 

%  fin  ens.  STMU.      <*. 

l^J 

Ml 

Ck.  No.  1 
* 

//,</«,..>  '- 

MayS 

OMh,  P.  - 
"     P.  - 

MHM 

4000 

1000 

•*q 

"   8 

875 
M 
M 

km 

60 
SO 

875 

6000 

6000 

41M 

60 

M 

DEPOSIT    SLIP. 

0»po*it»d  in 

^iTBl  Jlational  Iftanh. 

BY  CMAKLU  ScvMOcm, 

•J!7 

Nra,  York,  May  f  .  788*. 

•to 

E 

,...---. 

177) 
I9(« 

fir  Jit 

w 

B 

60 
60 

lu      • 

.  — 

4IM) 

APPENDIX. 


149 


BOOK.— SETS  VII  AND  VIII. 

Sales,  No.  3. 


Bush. 

Butifi. 

1884 

Rye. 

Oats. 

VIA 

J  L  Hunt   on  a/c     -    -    -    -              $1  40 

300 

895 

500 

300 

895 



AND  AUXILIARIES.-SET  vn. 


1. 

May  4 
S.  8.  Packard. 

Rent    -    -    - 

375 

225 
247 

no 

I 

No.  1.                         Jfew  York,Jtfay4,  1884- 

first  National  Sank. 

(poy  to                ft   S   (Packard                or  order 

Three  Hundred  and  Seventy-five  (Dollars. 
$375-pfo.                          Charles  Seymour. 

2. 

May  6 
Star  Ins.  Co. 

Premium  on 
Warehouse!  - 

S 

No.  2.                         Jfew  York,  Jtfay  6,  IS  34 

irirst  National  Bank. 

(Pen/  to  ...  Ftta  r  Insurcin^"  (?o                 or  order 

y\ifo  T~Fnndre(i,  and  Twenty-five             CDollars 

$£25-ffo.                          Charles  Seymour. 

3. 

May8 
Empire  Line. 

Freight    -    - 

f€d\ 

(>  ', 

No.  3.                         J*ew  York,Jtfay  8,  1884- 

.first  National  Sank. 
cpn.Tj  fn              EfMyivt  Line                or  ofdsr 

Two  Hundred  Forty-seven  and  -ffo  (I)ollars. 
$247-fiftf.                          Charles  Seymour. 

75F 

•  .'•-. 

•€a 

V°" 

1 

No  4                          J?ew  York,  ...            ..  183 

first  National  Bank. 

(Pay  to              _  O7-  order, 

/'TW7  n  TV 

$ 

PARTNERSHIP    SETTLEMENTS.* 

1.  C,  D,  and  E  are  partners,  each  inveMini;  $10000,  and  each  to  share  | 
of  the  gain  or  loos.  The  resources  ami  liabilities  at  tin-  clow-  of  hiwinew  are 
found  to  be  as  follows,  vt*. :  Merchandise  on  hand,  per  inventory.  $8159.50; 
cash  on  hand,  $T)012.88;  personal  accounts  dm-  tin-  firm,  $-l£{5 ;  notes  and 
•eeepu<d  drafts  i bills  receivable,  mi  liand,  $5000;  real  estate,  $8000;  bonds 
and  slocks.  $19000;  owing  by  the  turn  t<>  sundry  perrons,  $5>)05  ;  firm's  notes 
outstanding  (bills  payable),  $8000.  C  has.  withdrawn  during  tho  year 
$1347.87;  D,  $1400;  and  E.  $1480.  What  is  each  parm  .'>  inten-.-t  in"  the 
concern  at  closing  T 

aid  E  are  partners,  sharing  the  gains  and  losses  equally.   C's  net 

:.,-•../   VM|0nfc.U;    DXfMOOj   .in, I   K -,**•">!  1.       Kuril.-   th.-    N.-arth- 

firm's  gains  were  as  follows :  Merchandise,  $8629 ;  stocks  and  bonds,  $650  ; 

interest,  $985.25.      The  coot  of  conducting  the  business  was  $2125.     What 

was  each  partner's  interest  at  closing? 

3.  M  and  N  are  partners,  M  sharing  }  of  the  gain  or  loss  and  N    j.     M 
invested  $15000  and  N  $5000.    At  the  close  oftbekluilMH  \«-ar.  the  r.—  >urces 
and  liabilities  of  the  concern  arc  as  follows:   Cash  on  hand.  $2128 ;  bills  pa\  - 
able,  $4000;  bills  n-r.-iviil.lr.  $:!<HX) ;   the  firm  owes  sundry  pi-rsons,  $>• 
due  tht>  firm  from  sundry  persons,  $16427;  rent  paid  in  advance,  $H?.~>  ;  inort- 
gage  held  by  the  concern  on  the  property  of  A.  <;.  Pope,  $5000;    accrm •<! 
interest  on  the  same,  $150;   store  fixtures  valued  at  $H:;.l ;  merchandise  <>n 
hand,  $9410;  accrued  interest  on  firm's  notes  outbuilding,  $112;  accrued  in- 
terest on  notes  held  by  the  firm,  $75.      M  lias  withdrawn  $2465 ;   and  X. 
$8275.     According  to  the  agreement,  each  partner  is  to  receive  a  salary  ot 
$2500.     What  are  the  separate  interests  at  the  close  of  the  l-u.-iness? 

4.  A  and  B  are  partners,  A  investing  }  of  the  capital,  nrul  B  .'. ;  the  gains 
or  losses  to  be  shared  in  the  same  proportion.     The  following  is  an  exhibit  of 
the  business,  excepting  the  partners'  accounts,  at  the  close  of  a  certain  period  : 
Rewurtt«,  cash,  $8775  ;  Stone  &  Co.,  $150 ;  A.  R.  Mead,  $1200;  bills  rereiv 
able,  $5500;  Interest  on  the  saim     I.1'.  ;   merchandise,  $5140.      Liabiliti- 
Blair,  $500;  W.  II.  Rice,  $723;  Martens  &  Bultman,  $517.64  ;  bills  payal.l.  . 
$8800;  interest  on  the  same,  $169.     The  net  gain  during  the  year  was  $8174. 
What  was  each  partner's  original  investment? 

5.  Upon  a  close  valuation  of  the  personal  accounts  due  the  firm  in  th<- 
preceding  example,  the  partners  are  convinced  that  Stone  &  <  'h  no 
more  than  50^  of  its  face;  and  A.  R.  Mead's,  25^  of  its  face.     I 'pon  this 
valuation  what  would  be  the  gain,  and  what  tin-  condition  of  the  purtn<  r.s- 
account*  at  closing? 

<;.  P  and  Q  are  partners,  each  to  r> 

at  the  rate  of  6#  per  annum,  and  the  net  piin  or  loss  to  be  divided  equally. 
P  invests,  Jan.  1,  $5000 ;  Mar.  1,  $4000  ;  Jane  16,  $1500;  and  draws  <>ut  Apr. 
18.  $2500.  Q  invests,  Jan.  1,  $8000 ;  Sept  16,  $2000 ;  and  draws  out  June  1 

•  From  the  "PACKAKD  CorancttL  Aarrnmrnc." 


APPENDIX.  151 

$1500 ;  Nov.  11,  $500.  At  the  close  of  the  year,  the  net  gain  is  found  to  be 
$4475.25,  without  taking  into  account  the  interest  on  the  partners'  accounts. 
What  is  the  amount  due  each  partner  after  the  gain  is  adjusted  ?  (Time  by 
Compound  Subtraction.) 

f.  A  and  B  have  been  doing  business  as  partners,  A  sharing  f  and  B  f  of 
the  gains  and  losses.  A  invested  $4500,  average  date,  Mar.  25,  1882 ;  and 
drew  out  $2700,  average  date,  Sept.  12,  1882.  B  invested  $7200,  average  date, 
June  17;  and  drew  out  $3750,  average  date,  Oct.  25,  1882.  At  the  time  of 
their  dissolution,  Jan.  1,  1883,  the  debts  of  the  firm  were  all  paid  and  they 
had  on  hand  belonging  to  the  firm  $8750  in  cash.  How  shall  the  money  be 
divided,  each  being  allowed  interest  &t  &%  on  his  investment  and  charged 
with  interest  at  the  same  rate  on  the  amounts  drawn  ?  (Time  by  exact  days. 
Interest  360  days  to  the  year.) 

8.  A  and  B  are  partners,  A  having  |  and  B  \  interest.  A  advanced  in 
business  $12000,  average  date,  Jan.  12,  1883;  and  drew  out  $1265,  average 
date,  Oct.  20,  1883.  B  advanced  $7500,  average  date  April  5,  1883 ;  and  drew 
out  $2560,  average  date,  Nov.  25,  1883.  Jan.  1,  1884,  A  purchases  B's  interest 
in  the  business,  and  at  that  date  the  assets  are  as  follows  :  Cash,  $5800 ;  mer- 
chandise, $6250  ;  notes  on  hand,  $7300  ;  accrued  interest  on  the  same,  $387.14 ; 
personal  accounts,  $5700.  The  liabilities  are  as  follows  :  Notes  outstanding, 
$4200 ;  accrued  interest  on  the  same,  $227.65  ;  personal  accounts,  $2500.  How 
much  is  B  entitled  to,  5fc  of  the  personal  accounts  being  considered  uncol- 
lectible, and  interest  being  reckoned  on  the  partners'  accounts  at  6$  per 
annum  (365  days  to  the  year)  ? 

0.  Four  merchants  ship  goods  on  joint  account.  A  puts  in  $6000,  B 
$5500,  C  $4200,  and  D  $4800.  What  will  be  each  man's  share,  if  the  gain  is 
$9200  ? 

10.  Five  persons  having  claims  against  the  Government,  placed  their 
claims  in  the  hands  of  an  agent  for  collection  ;   A's  claim  amounted  to  $500, 
B's  to  $425,  C's  to  $300,  D's  to  $250,  and  E's  to  $175 ;  but,  after  the  agent  had 
deducted  his  fees,  there  remained  only  $1237.50.     How  much  did  each  claim- 
ant receive? 

11.  A,  B,  and  C  are  partners.     A  puts  into  the  concern  $3000,  but  with- 
draws half  of  it  at  the  end  of  6  months  ;  3  puts  in  $2000,  and  adds  $500  to  it 
at  the  end  of  4  months ;  C  puts  in  $2500  for  the  whole  year.    The  gain  during 
the  year  is  $1700.     What  is  each  one's  share  ? 

12.  Three  contractors  agree  to  build  a  road  for  $10000.     A  has  25  men 
at  work  for  16  days  and  30  men  for  34  days.    B  has  40  men  for  10  days  and  45 
men  for  40  days.     C  has  48  men  for  50  days.     C  receives  $200  extra  for  super- 
intending the  work.     How  mnch  is  each  contractor  entitled  to  ? 

13.  J,  K,  and  L  are  partners,  gain  or  loss  to  be  divided  according  to 
average  investment.     J  invests  as  follows  :  Jan.  1,  $6000  ;   Apr.  1,  $4000  ;   K 
invests,  Jan.  1,  $8000;  L  invests,  Jan.  1,  $7000;   Apr.  16,  $2500;  and  draws 
out  June  16,  $3500.       At  the  end  of  the  year  the  net  gain  is  found  to  be 
$4135.60.      What  is  each  partner's   share?      (Time  by  Compound  Subtrac 
tion.) 


152  APPSX  l>  i  \  • 

It.  A  ninl  11  are  partner*  lor  «>m>  year,  the  gain  or  loss  in  lx-  divide*!  In 
proportion  to  their  average  investments.  A  inveafctl.  Jati  1,  $HOOl) ;  .In  tie  in, 
$1,100;  Aug.  1.  $->5UO;  und  drew  out.  May  1,  $1500.  li  ;  „.  1, 

$10000;  April  1.  (500;  and  withdrew,  Aug.  10,  $2500.  II. -w  much  -Imuld  A 
Inrcet  Sept.  1  to  entitle  Idin  to  ,.n.-  Inilf  tin-  pun  V 

U.  A.  H.  mid  «'  form  a  copartnership  under  the  following  conditions 
A  Is  to  manage  tin-  luisiin-j.fi.  mid  t  >  r.-<-.-iv<-  therefor  $2400  per  annum,  which 
amount  i*  to  be  credited  as  July  1.  II.-  is  to  receive  interest  on  his  salary 
and  to  pay  interest  on  sums  withdrawn  at  tin-  rate  of  6  J6  per  annum.  B  and 
I'  are  to  furnish  the  capital,  and  to  receive  interest  therefor  at  the  rate  of  6$ 
p  ;•  •  .  I'he  Del  gain  «T  !..->  :..  !« •  di\  i. I.  d  e.|ii:i;i\  H  in\e>:s.  .l:m.  1. 

$10000 ;  Ajr.  1.  $5000.  0  invests,  Jan.  1,  $10000 ;  July  1,  $:>IM.II  .  and  draws 
oat  Sept.  16,  $500.  A  draws  out,  1-Vl,.  1,  $200  ;  Mar.  1,  $400 ;  July  11,  $500 ; 
OcL  1,  $200;  No\.  Jl.  $100.  At  the  end  of  tin-  year,  the  pun— without 
taking  into  account  either  the  salary  to  be  paid  to  A  or  the  interc.-t  «>n  the 
partners'  accounts — is  $8437.10.  What  will  In-  the  balance  of  each  partner's 
account,  when  all  the  items  have  betMi  properly  entered  t 

Hi.  A,  B,  and  C  are  partners,  A  investing  $25000  capital,  B  $5000,  and  (' 
nothing.  The  proportionate  interests  are  :  A  00 fr,  B  25 Jt,  C  15 J&.  At  the 
expiration  of  tlu>  term  of  copartnership,  und  aft  -r  the  gains  and  lomra  have 
been  adjusted,  A's  credit  of  capital  stands  intact,  B  has  a  credit  of  only  $1(HH) 
while  C  has  overdrawn  his  account  $8584.  C  being  insolvent,  how  much 
must  B  pay  into  the  concern  to  adjust  his  share  of  the  loss? 

/7.  M,  the  owner  of  a  mill,  employs  S,  a  miller,  under  the  f.illowing 
conditions:  M  is  to  furnish  the  requisite  capital,  and  S  to  receive,  in  lieu  of 
salary,  \  of  the  profits.  M  has  a  store  connected  with  the  mill,  on  the  bookn 
of  which  are  entered  all  time  sales  of  mill  products.  The  grain,  et<-..  for  the 
mill  is  furnished  by  M.  At  the  beginning  of  the  year  the  Milne  of  tli<-  ^ruiti, 
flour,  feed,  etc..  is  $1727.  During  the  year  M's  purchases  for  the  mill  amount 
to  $19275.  8  has  received  for  cash  sales  $16887,  of  wlm-h  he  has  \  aid  <.v, -r 
to  M  $15550.  The  sales  on  account,  as  shown  on  M'-  I >o  iks,  amount  to  s 
and  the  value  of  the  products  on  hand  is  $2828.  During  the  year  S  has  pur- 
chased goods  at  M'M  store  to  the  amount  of  $8:>7.'r>.  How  much  is  owing  to 
8  at  the  expiration  of  the  year? 

IS.  A,  B,  and  C  are  partners.  A  sharing  {  of  the  gain  or  loss,  B  ?.  and 
C  J.  Interest  is  to  be  rMckoned  ut  the  ratt- of  (i'c  y>, /•.//,  hivstothe 

year)  on  the  partners'  accounts,  and  each  partner  is  to  receive  a  salary  of 
$1800,  to  be  credited  as  July  1.  A  invested,  Jan.  1,  $16000;  and  withdr. -w 
during  the  year  $4875,  average  date,  Aug.  21.  B  invested,  Jan.  1,  $20000; 
and  withdrew  $6224.  average  date,  June  18.  C  invested.  .Ian.  1.  .-."iOOO;  and 
and  withdrew  $2625,  average  date,  July  :<1.  Jan.  1,  of  the  following 
the  merchandise  account  shows  a  gain  of  $18487.16 ;  the  interest  account  (not 
including  the  interest  on  the  partners'  accounts)  a  gain  of  $586.88;  sundry 
eoorignmeot  accounts  show  a  net  gain  of  $1287.11  '  ••  account 

(not  including  the  partners'  salaries)  shows  a  loss  of  $:M24.?">.  What  is  each 
partner's  interest  in  the  business  at  closing?  How  will  A  l»-  affected  if  each 
1-artner's  salary  is  increased  to  $2500? 


APPENDIX.  153 

19.  A,  B,  and  C  are  partners  in  business,  investing  as  follows :  A,  $4000 ; 
B,  $6000  ;  C,  $8000.     The  partners  are  to  share  the  profits  and  losses  in  pro- 
portion to  their  investments.     Each  is  entitled  to  compensation  for  services  at 
the  rate  of  $1800  per  year.      At  the  end  of  the  year  B  and  C  purchase  the 
interest  of  A,  and  in  the  payment  therefor,  it  is  desired  that  the  remaining 
members  shall  so  invest  that  their  interests  shall  be  equal.     It  is  mutually 
agreed  that  the  "  good  will"  of  the  business  shall  be  valued  at  $3000  in  the 
final  settlement.     It  is  also  agreed  that  a  discount  of  5%  shall  be  allowed 
upon  all  uncollected  accounts  as  a  fund  to  meet  bad  debts  and  costs  for  col- 
lecting.    A  statement  of  the  business  previous  to  closing  shows  the  following 
results :    Merchandise,   horses,   wagon,   office  fixtures,   and    cash   on   hand, 
$12410 ;  sundry  debtors,  $17030  ;   sundry  creditors,  $4050 ;  expense  account 
(not  including  partners'  salaries),  $2400 ;   profit  on  merchandise  sold,  $15332. 
A  withdrew  $1150;   B  withdrew  $2267;   C  withdrew  $2125.     How  much 
must  B  and  C  each  invest  or  pay  A,  and  how  should  the  books  of  the  new 
firm  be  opened  ? 

NOTE. — B  and  C,  not  desiring  to  have  the  new  books  encumbered  with  the  contingent 
accounts  of  "  good  will "  and  "  reserve  fund,"  closed  these  accounts  after  a  settlement  was 
made  with  A. 

20.  A  and  B  are  partners  in  business.    A  is  to  furnish  the  capital,  and  to 
receive  interest  at  the  rate  of  10$  per  annum.    B  is  to  give  his  entire  ener- 
gies to  the  business,  and  to  receive  therefor  a  yearly  salary  of  $2000,  payable 
in  monthly  installments  at  the  end  of  each  month.     The  net  gain  or  loss  is  to 
be  divided  equally.     A's  investments  are  as  follows  :   Jan.  1,  $7000  ;  April  1, 
$3000;  July  1,  $2500;  Aug.  1,  $5000.   Jan.  1  the  firm  assumed  a  note  for  him 
of  $2000,  due  and  payable  July  1.      The  following  amounts,  at  the  dates 
named,  were  drawn  out  by  each  of  the  partners:  A — April  10.  $300  ;  May  15, 
$150;   Aug.  20,  $500.      B— Jan.  31,   $166.67;    Feb.  15,  $200  ;  May  1,  $150; 
July  1,  $300;  Aug.  15,  $100  ;  Sept.  1,  $125  ;  Nov.  1,  $200.     At  the  end  of  the 
year  their  books  show  the  following  condition  of  the  business : 

Resources.  Liabilities. 

Cash -$5175.10        Personal  accounts    -    -     -     -     -$3150 

Merchandise     -     -     -     -     13250.17        Notes -      1500 

Personal  accounts  -     -     -    6750 

Notes 5000 

With  what  amount  should  each  partner  be  credited  ? 

NOTE.— B's  salary  is  due  in  equal  monthly  amounts,  at  the  end  of  each  month.  If  the 
actual  sums  drawn  by  him  at  the  various  dates  are  not  equivalent  to  this,  let  the  matter  be 
adjusted  on  the  basis  of  interest  at  6$  per  annum, 

21.  C,  D,  and  E  engage  in  a  professional  business  January  1,  with  a  cap- 
ital of  $6000,  which  is  contributed  equally.      Each  partner  keeps  an  account 
of  his  services,  and  also  of  his  receipts  and  expenditures,  and  the  net  gain 
is  to  be  divided  equally  at  the  end  of  the  year.       It  is  also  agreed  that  each 
shall  pay  into  the  concern  interest  on  all  money  used,  at  the  rate  of  Qft  per 
annum.     At  the  end  of  the  year  the  following  statements  are  rendered  : 

C's  services,  as  recorded,  have  produced  $7500.  His  collections  have 
been  as  follows:  Jan.  15,  $150;  Feb.  10,  $317.25;  March  1,  $500;  April  12, 


154  APPENDIX. 

$179;  April  90,  $600:  Jane  10.  $835;    July  1,  $419.85;  Sept.  0,  $17  i 

'.«.  15.  $41 .  31,  $600.     He  hiw  paid  expenses  f..r  the 

ooooern  •*  follow*:  April  10,  $125;  May  15.  $2:> .  July  I,  |187.50. 

D'§  terrices  have  come  to  $8000.  He  has  received  caah  as  follows : 
March  1,$875;  April  10.  $122;  Aj.nl  ir>.  $216.25;  Juno  10,  $159.75  ;  Julv  1.1. 
$417;  Oct.  5,  $818.75;  Dec.  10,  $400;  Dec  20  $500.  II.  IK,,  BXpcndad  for 
the  concern.  July  1,  $280. 

E  has  earned  $8750;   and  1,;  !    .Inn.    10,  $421  ;  Feb.  1,  $750; 

March  20,  $818.75;  March  31.  $127.50;  April  19,  $01:5.7:.  ;  .Inly  30.  $1500; 
Aug.  12,  $129.70;  Sept  19,  $829.20;  Oct.  15,  $459.88;  Nov.  19,  $517.84; 
Dee.  81,  $750.  He  has  paid  no  expenses  for  the  conr.ru. 

There  remains,  earned  and  uncolhrted,  $11413.25.  A  careful  exainimi- 
ti.ni  of  the  accounts  convinces  the  proprietors  that  not  more  tlmn  $500  of  this 
amount  is  doubtful;  and  they  base  their  net  earnings  on  (In-  undoubted 
resources.  How  will  each  partner's  account  stand  when  the  pK.|«  r  adjust- 
ments have  been  made  and  recorded '.' 


MISCELLANEOUS    EXAMPLES. 

[Three  problems  are  wjrvlceablo  in  testing  the  atndent'n  proficiency  in  the  work  pasted 
over,  and  bin  -kill  in  wiving  practical  qnoxtlons  in  account*.  Some  of  the  example*  ndmlt 
of  various  wiluii.in-.  In  all  mien  cawn  it  would  be  well  to  require  the  work  to  be  performed 
by  tbe  ncvcral  methods,  thus*  bringing  out  more  clearly  all  the  points  Involved,  besides 
affording  additional  proof  of  the  correctness  of  tbe  work.] 

/.  A  merchant  commenced  business  with  a  cash  capital  of  $4000.  At  the 
end  of  the  year,  the  following  facts  appear  from  his  records:  Amount  of  Cash 
received,  $17500;  amount  paid  out.  $13750;  J.  Smith's  account  is  debited 
$1500.  and  credited  $750;  Holx-it  Brace's,  Dr.  $900,  Cr.  $595  ;  T.  Sloan,  Dr. 
$915,  Or.  $1417;  Value  of  Merchandise  unsold,  $500. 

Required,  the  net  capital  at  doting ;  at,  also,  t/«  n<  t  </<iin  ihirimj  tin-  year. 

'£.  A  commenced  business  with  tho  following  investment  :  Cash  on  li:.n<!. 
$1500;  Cash  in  Bank,  $5750 ;  Notes  <>n  hand,  $2500;  Int.  r.-st  dm-  on  sam.  . 
$150;  Robert  Smart  owes  on  %,  $2000.  His  l.'stws  and  pains  during  th« 
year  are  as  follows :  Gain  on  Merchandise,  $r,M1.2.1 ;  I><>.  <>"  Sliipments, 
$1595 ;  Expenses,  $375  ;  Loss  on  bad  debts,  $800. 

Required,  hit  net  capital  at  the  dote. 

.'{.  Henry  Smith  and  VVm.  Jones  are  partners,  each  investing  $10000  in 
the  busineHB ;  gains  and  losses  to  be  divided  ei|iiully  During  the  business 
Smith  has  withdrawn  $500,  and  Jones  $700.  At  the  close  they  ascertain  that 
there  has  been  a  net  gain  of  $1575.  The  Balan  hil.its  the  following 

list  of  property  and  debts :— Property.—  Bank  Stock,  $5000;  Merchandise, 

$750;  Notea,  $4000;  Personal  Indi-hii-dii, -ss.  >  h,  $ .  Debts.— 

Personal  account*,  $2500 ;  Notes,  $2750. 

Required,  the  amount  of  Cath  on  hand,  and  the  condition  of  the  partner* 
mccotmtt. 


APPENDIX.  155 

4.  Commenced  business  without  capital  or  liability.     At  the  end  of  the 
year  my  Ledger  shows  the  following  balances : 

Debits.  Credits. 

Cash $1700  Bills  Payable $1500 

Merchandise 475  Robert  Schenck    -               -     -  2150 

Bills  Receivable 500  Peter  Misner 300 

Expense 175  Commission 175 

Interest 25  James  Connor 1250 

Stuart  &  Co. 2500 


$5375  $5375 


I  have  Merchandise  on  hand  valued  at  $1275. 
Required,  my  capital  at  the  close. 

5.  The  following  is  an  exhibit  of  my  business,  at  the  close  of  a  certain 
period : 

Resources.  Liabilities. 

Cash  -          • $575  A.  Van  Wyck  -  -    $500 

Bank   - 3200  Sanborn  &  Co.  -     -     -  -      250 

Stuart  &  Co.  150  H.  &  J.  Lewis  -     -  -      473 

Rathbone  &  Dick  ----..     1200  J.  McFarland    -     -  319 

Government  Bonds   ...     -    4000  Bills  Payable 3000 

Bills  Receivable 1500  Interest  on  same 150 

Interest  on  Notes     -     ...       125 

Mortgages 3750 

Merchandise 1390 

My  net  gain,  based  on  the  above  exhibit,  has  been  $3175. 

What  was  my  original  investment  ? 

6.  Suppose,  in  the  above  example,  that  Stuart  &  Co.'s  account  is  worth 
no  more  than  25  %  of  its  face,  and  Rathbone  &  Dick's  but  50%   of  its  face. 

Upon  this  valuation,  what  has  been  my  net  gain  f 

7.  The  account  showing  net  investment  has  been  torn  from  my  Ledger, 
leaving  all  the  other  accounts  intact,  as  follows : 

Debits.  Credits. 

$17310  15 Cash $15976  12 

8132  50 Merchandise 8795  50 

117  25 Expense 

1400         -     -  ...      Bills  Receivable 

12  50    -    -  Interest 

175         Johnson  &  Co. 

The  Merchandise  remaining  unsold  is  valued  at  $5795.  There  were  no 
amounts  invested  or  withdrawn  after  the  opening  of  the  business,  and  the 
net  gain  has  been  $1328.25. 

Required,  the  original  in/vestment. 


156  APPENDIX. 

N.  The  following  is  a  Trial  Balance  of  my  Ledger: 

XfcMte  Or. 

Stock $r>i 

$19150 C'ash liuij 

7500 Merchandise -         6125 

8000 Real  Estate          9150 

4000 Bill*   K.reivahle 2000 

8000 Bills  Payable 5100 

1» Interest        

850 KXJM-IISO 

1?3 J.  Whitcomb 

H.  Van  Renssalaer IH 


My  net  pain  has  been  $  1008,  and  the  only  property  I  have  on  hand,  not 
exhibited  in  the  Ledger,  is  unsold  Merchandise. 
Required,  itt  valuation. 

it.  My  Merchandise  cost  $15000,  and  I  have  sold  what  has  produced 
$8681.25.      My  average  gain  in  the  sales  has  been  80$  on  the  cost  of  the 


Required,  the  value  of  untold  Merchandise,  estimated  at  cost. 

IO.  A,  B,  and  C  are  partners,  equal  in  interest.  Some  time  ngo  A  drew 
oat  for  private  use,  $500,  and  C,  $400. 

Jloif  may  Vie  natter  now  be  equitably  adjusted  between  them  to  at  to  charge 
them  with  equal  amountt  on  the  bookt  t 

1  1  .  D  and  E  are  equal  partners.     They  have  on  hand  a  note  for  $2000, 
which  E  considers  doubtful.    D  agrees  to  buy  E's  share  ($1000)  for  $500. 
Required,  the  entry  on  the  bookt. 

I  .'.  F  admits  G  aa  partner,   on  condition  that  the  latter  shall  assume 
notes  outstanding  to  the  amount  of  $3000. 
What  it  the  required  entry  f 

l.'t.  H,  the  sole  proprietor  of  a  business,  owes  his  clerk,  J,  the  sum  of 
$500,  for  which  his  note  is  given.  Afterwards  the  clerk,  J,  is  token  in  as  a 
partner,  having  one-third  Interest  in  the  business.  When  tin-  note  falls 
due,  J  draws  the  amount  from  the  concern,  and  delivers  the  note  to  H  as 
canceled. 

Hat  J  been  paid  in  fuU  t  Jf  not,  what  entry  can  be  made  on  the  bookt  to 
properly  adjutt  the  matter  f 

14.  Suppose,  in  the  above  case,  that  J  had  put  the  note  into  the  n>n>  <  rn 
u  a  part  of  his  investment  ;  and  when  it  matured,  the  amount  was  paid  over 
bjHto  J. 

What  entry  would  properly  adjutt  the  matter  t 


APPENDIX.  157 

15.  Suppose,  in  the  latter  case,  that  H  put  the  money  into  the  concern, 
and  took  up  the  note. 

What  would  be  the  proper  entry? 

16.  K  owes  L  $1000  ;  L  owes  M  $1000  ;  and  M  owes  K  $1000.    In  pay- 
ment of  his  debt,  K  gives  to  L  his  sight-draft  on  M  for  the  full  amount. 

What  debit  and  credit  entries  in  each  of  the  persons'  books  witt  this  transac- 
tion necessitate? 

1  ~.  N,  O,  and  P  are  equal  partners.  At  the  end  of  a  certain  period  the 
following  amounts  are  due  them  from  the  business  for  services :  N,  $250 ;  O, 
$225 ;  P,  $125. 

Required,  the  proper  Journal  entry  for  settling  this  matter  directly  between 
the  partners,  permitting  no  accounts  except  those  of  the  partners  to  be  used. 

18.  Q,  R,  and  S  are  partners  equal  in  gains  and  losses  ;  each  to  receive 
interest  on  his  average  investment.  At  the  end  of  the  year  it  is  ascertained 
that  Q  is  entitled  to  $56.95  interest ;  R  to  $67.40  ;  and  S  to  $16.50. 

Required,  the  proper  Journal  entry  for  adjusting  this  matter  directly 
between  the  partners  without  the  intervention  of  the  Interest  %. 

If).  Suppose,  in  the  above  case,  that  the  losses  and  gains  are  not  to  be 
divided  equally,  but  are  to  be  apportioned  as  follows :  Q,  Taff ;  R,  T3ff  ;  S,  T%. 
What  would  then  be  the  required  entry  ? 

20.  T,  U,  and  V  are  partners,  equal  in  gains  and  losses.      Each  partner 
is  to  receive  interest  on  his  average  investment,  or  pay  interest  on  his  de- 
ficiency.   At  the  close  of  the  year  T  is  entitled  to  $72.50,  and  U  to  $50.75; 
while  V  is  charged  for  $43.25  on  his  insolvency. 

Required,  the  proper  Journal  entry  ichich  shaU  adjust  the  matter  without 
the  aid  of  any  accounts  but  those  of  ike  partners. 

21.  Suppose,  in  the  foregoing  example,  the  division  of  losses  and  gains 
is  not  to  be  equal,  but  is  to  be  made  on  the  following  basis :  T,  45$  ;  U, 

V,  25#. 

Required,  the  proper  Journal  entry. 


L68  \  r  r  i  .\  i>  i  x 


DETECTION  OF  ERRORS  IN  TRIAL  BALANCES. 

following  hints  apply  to  tin-  tlrtrrtion  of  error-;  in  trial 
balances,  or  in  any  operation  in  which  error-  are  nr.i.ic  in  addition 
or  subtraction,  or  in  tran-ft  irinLr  numbers  from  one  place  to 
anothn. 

1.  Ascertain  the  exact  amount  of  the  error.      Much  time  is  s  •m»Mim.-> 
wasted  in  looking  for  errors  which  do  not  actually  exist. 

2.  Revise  carefully  tin-  additions  <>t  tin*  Trial  Balance  before  looking  for 
the  error  in  tin*  Ix-dger  or  other  IxMiks. 

8.  If  tin-  error  is  in  one  figure  only  (as  2000.  100,  50.  etc.),  it  is  probably 
an  error  in  addition  or  subtraction. 

4.  If  an  amount  is  entered  on  the  wrong  side  of  nn  account,  or  i*  added 
when  it  should  be  subtracted  or  vice  verxi,  tin-  error  will  In-  twice  the  amount 

5.  If  the  digits  of  any  number  arc  written  to  the  right  or  left  on>-.  • 
three  places,  and  the  error  be  divided  by  9,  99,  or  999  respectively,  tin- 
quotient  will  be  the  number. 

Thus,  if  $427  be  written  $4.27,  the  error  will  b«  $422.73  ;  which  divided 
by  90  (by  9  and  11),  the  quotient  will  be  $t.'J7. 

The  number  of  9's  by  which  the  number  can  be  exactly  divided  in  equal 
t  *  the  number  of  places  which  the  number  has  been  transferred  to  the  right 
or  to  the  1- 

8.  If  two  consecutive  digits  of  any  number  are  transposed,  the  error  will 
he  a  multiple  of  nine ;  and  the  quotient  obtained  by  dividing  the  error  l>y  :» 
will  express  the  difference  between  the  digits  transposed. 

Thus,  If  487,  be  written  478,  the  error  will  be  36 ;  which  divided  by  9 
produces  4,  the  difference  between  8  and  7.  The  same  error,  30,  will  arise  if 
the  figures  transposed  are  0  and  4,  1  and  5.  2  and  6,  4  and  8,  or  5  and  9. 

7.  If  the  error  contains  a  number  of  figures,  it  is  probable  that  some 
account  or  item  has  been  omitted. 

8.  Look  for  the  error  systematically,  and  not  in  certain  portions  of  the 
work  selected  at  rand 

9.  Errors  are  frequently  the  result  of  a  neglect  to  write  figures  legibly,  or 
a  failure  to  arrange  them  in  true  vertical  columns,  so  that  units  will  .stand 
under  units,  tens  under  tens,  etc. 


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